Despite an economic recession, Oklahoma loan officials say college will still be affordable and within reach for students.

Officials with the Oklahoma Guaranteed Student Loan Program say loan funds will continue to be available for college bound students and their families through the Federal Family Education Loan program.

“The FFEL program community remains dedicated to providing low-cost federal education loans during these challenging economic times,” said Glen D. Johnson, Oklahoma State Regents for Higher Education Chancellor in a press release. “To our knowledge, not a single student has been unable to get a federal student loan due to the current market conditions.”

As part of a U.S. Department of Education initiative, the FFEL program is the largest financial aid program in the nation and the only federal education loan program that offers students and schools a choice in lenders, which results in competitive rates for students and has a student repayment rate of more than 94 percent, said Angela Caddell, Oklahoma State Regents for Higher Education Director for Communication, Financial Education and Outreach.

“Usually with students who apply for a FFEL student loan, it is their first loan ever with no credit history and to get such high pay back rate, it is extraordinary,” Caddell said. “I think that reflects well on the FFEL community. It teaches students about financial literacy, not just with student loans but with all parts of their financial life for the rest of their lives.”

Students must fill out the Free Application for Federal Student Aid at the beginning of the year to be eligible for federal financial aid.

“It is the perfect time to start getting ready to fill out a FAFSA application for the next school year,” Caddell said. “Every student going into college for the 2009 fall semester should fill one out, even if a student feels like they do not qualify. Only through a FAFSA application do students know that they can qualify for federal aid, work study and grants. It is critically important to get it in as soon as possible after Jan. 1.”

For current borrowers facing economic hardships, they should contact their lenders to see if they qualify for a deferment, which temporarily suspends the required payments, Caddell said. Depending on the situation, borrowers may also qualify for a forbearance or modified repayment schedule to save them from delinquency and potential bankruptcy, she said.

“With a federal student loan, student borrowers have the options of going to their lenders if they can not make payment to see if they qualify for any of these benefits, but they are not automatic,” Caddell said. “Students have to request them and it has to be the right option for the situation.”

The Oklahoma State Regents for Higher Education is continuing to make student loans available and OU is working closely with them to help guarantee all OU students who need financial aid receive the benefits.

“Some lenders have decided to focus on other functions and have left this market,” said OU Registrar and Associate Vice President Matt Hamilton. “But at this point it appears that there are adequate choices for Oklahoma students. Needless to say, we are monitoring these issues, and we are evaluating all options necessary to serve our students.”

The federal government has announced additional plans to help educational lenders with lines of credit, he said. The lending situation has improved over the last few weeks, but OU will continue to keep an eye on the activities to make sure OU students can afford college, Hamilton said.

Students should always consider filing for federal aid before seeking out a private loan, Caddell said.

“It is really important for students to exhaust all federal loan options before turning to private loans,” Caddell said. “Federal loans have a lower interest rate, are more flexible repayment plans and include deferment, forbearance and loan forgiveness benefits which is good for students especially in this financial unstable time.”