College loans

Effective December 9th, the nation's 2000 federal savings and loan associations, which were previously largely restricted to making construction loans, have been permitted to loan up to $10 000 to individuals for college and university education expenses. Under new Federal Home Loan Bank regulations, up to five percent of the assets of an association, an estimated $3 billion for the nation as a whole, may be offered for loans for higher education. The regulations do not specify the type of security to be required nor the of interest to be charged, these being left to the individual association.