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Utah college students won't have to worry about the availability of student loans for the coming academic year.

As banks across the nation and in Utah have announced they will halt federally backed student loans, the Utah Higher Education Assistance Authority on Friday said it would use cash reserves to make sure students needing loans can get them.

"We've got money to make the student loans without disruption, whereas many states do not," said the authority's executive director, David Feitz. "Because of our financial reserves, we have staying power to make loans, even in the credit crisis."

The authority's board of directors approved the plan late last month, Feitz said. Regents heard about the plan Friday.

The Utah Higher Education Assistance Authority lends about $350 million a year to Utah students, Feitz has said.

The authority, however, wants to keep students out of a financial lurch that could discourage them from seeking a college education. It plans to use its financial reserves "as a bridge to better times," Feitz said.

"Even if other lenders drop out, we're still planning to make those loans...until the credit markets turn around," he said.

There is about $200 million in those financial reserves, Feitz said, thanks to conservative management, low overhead and money set aside along the way.