Local News

From Kentucky Public Radio’s Tony McVeigh

Kentucky will purchase bonds to keep state student loan programs afloat until federal help arrives.

Governor Steve Beshear says the state will purchase 50-million dollars in bonds to ensure short-term financing for student loans. He says the action is necessary because the national credit collapse is crimping the availability of student loan dollars.

“With this influx, we are confident that every student who needs a loan, will receive a loan,” says Beshear.

Beshear believes Kentucky may be the only state using bonds to restore student loan funding. He says the funding mechanism is safe because the federal government is promising to purchase the loans. The proposal still needs approval from a state agency and a legislative oversight committee. That could come early next week.