Banks across United States have been getting out of the student loan business and now First Financial Bankshares is following by getting out of student loans biz. Government student loans are one of the few programs not being cut because of the economic recession. However, students graduating with student loans may face a tough time with repayment. First Financial has notified the schools it services that it is temporarily suspending its student lending activities as a result of changes mandated by the Department of Education beginning with the 2009-2010 school year. New regulations significantly reduced the profitability of the student loan program.

With fewer summer jobs posted this year and most employers cutting back on staff and other expenses, more students will be required to resort to student loans to help pay for their tuition and fees next year.

Starting in November, payday loan companies in B.C. will have to be licensed and limit their charges on a short-term loans. The regulations will also prevent payday lenders from lending more than 50 per cent of the customer's next paycheque. Payday loan companies will have to pay $1,500 for an operating licence, plus $750 to licence each office they operate. The licence fees include the cost of a mandatory criminal record check for payday loan operators in BC.

Payday lenders will also be required to post signs that tell customers what they're really paying in terms of interest rate.

Oh yea, the max interest limit on pay-day loan is 23%.

Some industry analysts believe the new rules will protect consumers from predatory business owners, while others predict consumers will suffer because some payday loan operators may shut down for good. Some consumer advocates, however, say the government may not have gone far enough. People will still have to pay 600% annual interest rates on their short-term loans.