The subprime mortgage crisis domino that hit the credit market has shaken the student loan business as well. Nearly 50 student lenders -- accounting for an estimated 12 percent of the federally backed student loan market -- have stopped making government guaranteed loans, either temporarily or permanently, in recent months.

CIT Group Inc said on Thursday it is no longer making student loans, as the struggling finance company moves out of consumer lending and focuses on commercial finance instead.

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Borrowers Who Apply to Consolidate With NextStudent by August 31, 2007 Could Lower Student Loan Payments by up to 60%

Scrutinizes Deals Between Student Loan Provider and University Athletic Department

Paying for College? SimpleTuition Offers Tips for Students Seeking Financial Information

New York Attorney General Andrew M. Cuomo said Wednesday that he was broadening his inquiry to examine the criteria lenders use when making loans, and whether they violate civil rights statutes, The New York Times reported.

The U.S. Education Department, criticized for lax oversight of student loans, released proposed rules Friday that would set new standards for universities and ban lenders' marketing practices that have resulted, in some cases, in loan company payoffs to university officials, reported The New York Times.

The Democratic head of the US House of Rep. edu committee said on Tuesday investigators probing the Bush admn's management of federal student loan programs had found "serious oversight failures by senior officials."

Congressional investigators probing the $85 billion student loan market pushed into new areas by raising concerns about collection tactics and seeking an inquiry into possible conflicts of interest inside the U.S. Education Department.