Amidst the student loan bill in Congress and rising tuition costs, many students and parents are not receiving valid information on what this all means to potential borrowers.
To many experts reviewing the bill, increasing the amount of government aid to students is just another part of Obama's overall nanny-state agenda.
The reforms, signed into law by President Obama last month, effectively makes the government the primary lender in federal student loans by cutting out banks as the middleman. The White House has said the changes, which take effect July 1, will save $68 billion over 11 years.
The loan industry estimates that up to 35,000 jobs might be lost by the transfer from FFEL to direct-loan. Members of Congress who represent states that employ a large portion of the industry workforce have opposed the measure for that reason.
http://www.time.com/time/politics/article/0,8599,1924128,00.html#ixzz0mFETEzb4
And of course The White House is not mentioning the downfall to the industry. The middle-man being cut out of Federal funding means loss of competition and loss of jobs. Ending private student lending also would disrupt a relationship many college borrowers prefer because private lenders provide their students with personal service, tailored loan packages and on-campus support.
Students also worry about the Government's ability to handle such a large loan volume. Students at the University of Central Oklahoma in Edmond, Oklahoma have reported that the Gov didn't disperse funds until 1 month after the tuition deadline. Amanda Rogers, a freshman at UCO was asked what she thought of the new student loan guidelines set by the U. S. Government "It seems a little silly to get excited about so-called student benefits when you cannot afford to eat."
Amanda, like many other students are turning to private aid. Interest rates may be a bit higher, but students seasoned by the financial aid process understand that private loans are more tailored to their needs. Some programs take a percentage of the money a student may spend on personal items and apply that the amount they owe. It's like free money.
To many experts reviewing the bill, increasing the amount of government aid to students is just another part of Obama's overall nanny-state agenda.
The reforms, signed into law by President Obama last month, effectively makes the government the primary lender in federal student loans by cutting out banks as the middleman. The White House has said the changes, which take effect July 1, will save $68 billion over 11 years.
The loan industry estimates that up to 35,000 jobs might be lost by the transfer from FFEL to direct-loan. Members of Congress who represent states that employ a large portion of the industry workforce have opposed the measure for that reason.
http://www.time.com/time/politics/article/0,8599,1924128,00.html#ixzz0mFETEzb4
And of course The White House is not mentioning the downfall to the industry. The middle-man being cut out of Federal funding means loss of competition and loss of jobs. Ending private student lending also would disrupt a relationship many college borrowers prefer because private lenders provide their students with personal service, tailored loan packages and on-campus support.
Students also worry about the Government's ability to handle such a large loan volume. Students at the University of Central Oklahoma in Edmond, Oklahoma have reported that the Gov didn't disperse funds until 1 month after the tuition deadline. Amanda Rogers, a freshman at UCO was asked what she thought of the new student loan guidelines set by the U. S. Government "It seems a little silly to get excited about so-called student benefits when you cannot afford to eat."
Amanda, like many other students are turning to private aid. Interest rates may be a bit higher, but students seasoned by the financial aid process understand that private loans are more tailored to their needs. Some programs take a percentage of the money a student may spend on personal items and apply that the amount they owe. It's like free money.
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