Good questions. From what I heard, those loans obtained prior to July 1 will continue (tho most students only get loans one year at a time).
Given the economic climate, I am not sure that banks would want to take on a non-capitalized loan—in past they did not need collateral because the government guaranteed the loan. That said, probably would not rule out a parents home equity loan or credit line on a stock portfolio....
Just another example of further government intervention.
Current loans are being sold to the companies Bambi awarded with handling all government loans. Banks are selling them off to this handful of companies. Prior to this takeover, the Fed only handled approximately 20% of all student loans - now they will have 100%, effective immediately. I wouldn’t want to be hoping for a loan this fall - no way they will be ready.