February 13, 2009
Credit Freeze Leaves Thousands of Student Borrowers Stuck in Default
Judy Ellis had tried to set things right.
After defaulting on her $40,000 student loan, she had made nine on-time repayments and was on the verge of having her loan restored to good standing and her credit history cleared. Only one step stood between her and a cheaper mortgage: the sale of her "rehabilitated" loan to a new lender.
Then the credit crunch hit, and the market for student loans dried up. The freeze has left Ms. Ellis and thousands of borrowers like her in a