GREENVILLE, S.C. -- Thousands of South Carolina college students are getting a lesson about the country's credit crunch.

The South Carolina Student Loan Corp. is the largest student loan lender in the state.

The state-based, nonprofit company said on Thursday that it will stop issuing new private loans.

For many college students, financial aid is what keeps them on campus.

"Student loans are an integral part of my education," Christopher Becker said. "My parents and I would not be able to send me to Furman had I not had any student loans."

The state's largest student lending company raises money for those loans by selling two kinds of bonds: those that are federally backed and those that are privately financed.

Because of the economy, fewer investors are willing to make those private deals. So the South Carolina Student Loan Corp. has stopped issuing what's known as Palmetto Assistant Loans.

Currently, about 12,000 students rely on that money as a supplement to other financial assistance.

The corporation will honor the private loans through the spring of 2009 but will not accept any new applications.

"It's very difficult for students who may be starting up this spring of 2009 semester," said USC Upstate Financial Aid Director Kim Jenerette. "Maybe they've been out of school for a while or maybe they're just starting for spring of 2009, and if federal loans and grants or scholarships are not enough and they need private loans, it's going to be a little bit difficult perhaps to find enough funding."

But there's still time to search for funding.

"Your best option is always to go -- regardless of where you go to school -- is to go to your financial aid office and check with them," said Furman University representative Vince Moore. "I mean, that's what they're there for. That's what they do."

South Carolina Student Loan Corp. will continue to offer federal loans.