"The financially struggling Connecticut Student Loan Foundation will stop offering new federal loans because of its uncertain future," the Hartford Courant reports. "The foundation, which had been issuing about $130 million in loans a year, has been notifying colleges and guidance counselors that it can no longer act as a lender. The decision will have no effect on those who already have loans through the foundation. 'The organization is in dire financial straits and may not be able to make loan disbursements,' said Mike Meotti, a member of the foundation's board of directors. 'The worst thing you can do is tell students in June or July they have a loan, but then not actually be able to make the disbursement to the college in September and January.' The struggling foundation is dealing with harsh criticism from state auditors, the resignation of most of its board of directors, and financial problems that have put its Rocky Hill headquarters in foreclosure and prompted it to pare its staff of 162 to about 45. Nine employees were laid off Friday."