Skip to comments.House Votes to End Subsidies to Student Loan Firms [consolidates lending in Dept. of Education]
Posted on 09/17/2009 7:22:06 PM PDT by rabscuttle385
The Democratic-led House approved a bill Thursday that would overhaul college lending and spend tens of billions of dollars on student grants, community colleges, school construction and early childhood education.
The bill would end a program that subsidizes private lenders that provide federally guaranteed student loans. The government itself would make all such federal loans as of July 1, effectively cutting out banks and other lenders as middlemen. That would be a major shift because direct government lending in the last academic year accounted for about a quarter of federal loan volume.
(Excerpt) Read more at washingtonpost.com ...
Geez. Another “industry” now controlled by the Feds.
Funny title. Nationalisation more like it. The taxpayers liablility balloons from here on in.
No way the federal government will be able to efficiently handle all those loans. No way.
Too bad the good kids and the taxpayers have to suffer through it too though.
The costs should be higher than those incurred by the private sector.
I suspect a couple of the service centers presently handling all this business will receive government contracts to continue doing exactly what they're doing.
There are no savings possible in this process.
I’m so glad my son is nearly finished with college. Well, if he ‘gets it together’ this semester that is, LOL!
Work and rely on your folks for books and food, I guess. No one in America will be able to get an honest, EARNED education from this point on. Our work force is going to suffer greatly in the near future when everyone is hired based upon ‘Political Correctness’ and not on ability. H#ll, we’ve seen that in the White House, already!
All will be lost until Sarah reverses all of this stupidity. Until then we’ll have to buckle in and suck it up through the next few years. ;)
If the government would stop all the loans and subsidies, college education might be affordable enough that we could pay cash for it from savings and work. They are just throwing gasoline on a fire. No one cares about costs when someone else is picking up the tab.
This is so FAR unconstitutional as to be laughable.
It's like the Barney Frank program for selling homes to people who can't afford to pay their mortgages ~ in the end, there was no more money left to make loans, nor could anyone afford to buy a home even though prices had collapsed.
Same with student loans.
Yes indeed. These sorts of things can actually appear to be working at first - it may even take decades - but eventually they do collapse. You cannot suspend reality.
I think it will be just the opposite. I think Bama just gave the green light for colleges/universities to raise their tuition.
Just the opposite? He may have given them the green light, but he’s giving the students the shaft. The federal funds available to make loans and administer the program will not be adequate. The administrative costs are going up, and that reduces the funds available to loan.
Why anyone would take out a student loan for anything other than MD, lawyer or engineering is beyond me.
This is nothing but a bill to grab more power for the federal government and add new unionized employees to the payroll.
As an Alabama Fan, I cringe when you call BHO Bama.
Those with lots of money can pay their way into school. Politically correct and connected get in. Politically incorrect and poor, you’re ... un-educated, so stick in the correct cuss word here.
Maybe they'll contract it out, just like they do with Medicare.
“No way the federal government will be able to efficiently handle all those loans. No way”
They won’t be “loans” for long. The program will slowly morph into a mismanaged and bankrupt govt welfare boondoggle entitlement that constantly has money thrown at it by Congress.
See also Fannie Mae and Freddie Mac.