by KYW's Paul Kurtz

With the economy still in freefall, some parents are worried about the status of student loans, but steps are being taken to head off a shortfall.

On Wednesday, treasury secretary Henry Paulson pushed consumer lenders, including student loan companies, to the front of the governments $700 billion handout line.

And last week, the Department of Education announced plans to expand purchases of the student loans it backs -- more good news says John Morris, Temple University's director of student financial services. He says the moves should send a message to students and parents:
 
"Some banks are holding loans in their portfolios and this gives them more cash when the government buys them back, and then they can in turn can re-lend those funds to students who are attending school for the upcoming semester and/or the fall."

Morris says the moves should send a message to students and parents:

"They need to know that right now -- for 2009 and 2010 -- that there's going to be more student loans available for them."