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House Votes to End Subsidies to Student Loan Firms [consolidates lending in Dept. of Education]
The Washington Post ^ | 2009-09-18 | Nick Anderson

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 ...


TOPICS: Business/Economy; Front Page News; Government; News/Current Events
KEYWORDS: 111th; banking; bho2009; bho44; college; govwatch; highered; studentloans

1 posted on 09/17/2009 7:22:07 PM PDT by rabscuttle385
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To: wafflehouse; Leisler; PAR35; TigerLikesRooster; AndyJackson; Thane_Banquo; nicksaunt; ...
*Ping!*
2 posted on 09/17/2009 7:22:35 PM PDT by rabscuttle385 (So many Communists, so little time.)
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To: rabscuttle385

Geez. Another “industry” now controlled by the Feds.


3 posted on 09/17/2009 7:24:57 PM PDT by ataDude (Its like 1933, mixed with the Carter 70s, plus the books 1984 and Animal Farm, all at the same time.)
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To: rabscuttle385

Funny title. Nationalisation more like it. The taxpayers liablility balloons from here on in.


4 posted on 09/17/2009 7:25:00 PM PDT by spyone (ridiculum)
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To: rabscuttle385
I have to admit it is going to be kind of fun watching some of these idol-worshiping college kids get screwed over by the administration they helped bring into office.

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.

5 posted on 09/17/2009 7:29:48 PM PDT by comebacknewt
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To: rabscuttle385
Alas, the government will need to hire people, buy computers and rent real estate to perform all the work necessary to administer the new and existing loans.

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.

6 posted on 09/17/2009 7:30:39 PM PDT by muawiyah
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To: rabscuttle385

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!

*Shakes Head*

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. ;)


7 posted on 09/17/2009 7:31:11 PM PDT by Diana in Wisconsin (Save The Earth. It's The Only Planet With Chocolate.)
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To: rabscuttle385

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.


8 posted on 09/17/2009 7:32:37 PM PDT by Fingolfin
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To: rabscuttle385
I can see it now: My kid won't get loans because she didn't take all the leftist brainwashing courses.

This is so FAR unconstitutional as to be laughable.

9 posted on 09/17/2009 7:37:02 PM PDT by Carry_Okie (Islam offers three choices: surrender, fight, or die.)
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To: Fingolfin
There will actually be less money available for student loans with this particular government takeover.

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.

10 posted on 09/17/2009 7:39:45 PM PDT by muawiyah
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To: muawiyah

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.


11 posted on 09/17/2009 7:42:22 PM PDT by Republican Wildcat
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To: muawiyah

I think it will be just the opposite. I think Bama just gave the green light for colleges/universities to raise their tuition.


12 posted on 09/17/2009 7:45:19 PM PDT by SirFishalot
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To: SirFishalot

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.


13 posted on 09/17/2009 7:53:14 PM PDT by muawiyah
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To: rabscuttle385

Why anyone would take out a student loan for anything other than MD, lawyer or engineering is beyond me.


14 posted on 09/17/2009 7:53:42 PM PDT by montag813 (During times of universal deceit, telling the truth becomes a revolutionary act. -George Orwell)
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To: comebacknewt

This is nothing but a bill to grab more power for the federal government and add new unionized employees to the payroll.


15 posted on 09/17/2009 8:10:31 PM PDT by Blood of Tyrants (The Second Amendment. Don't MAKE me use it.)
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To: SirFishalot

As an Alabama Fan, I cringe when you call BHO Bama.


16 posted on 09/17/2009 8:14:38 PM PDT by ladymac
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To: Carry_Okie

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.


17 posted on 09/17/2009 8:40:01 PM PDT by tbw2 (Freeper sci-fi - "Humanity's Edge" - on amazon.com)
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To: rabscuttle385
Great, another financial disaster in the making. Hopefully the Senate will alter this bill a great deal. The Dems stuck this through undercover of the ACORN brouhaha.
18 posted on 09/17/2009 8:43:36 PM PDT by Major Matt Mason (The DemocRat Party is no longer an American political party.)
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To: muawiyah
Alas, the government will need to hire people, buy computers and rent real estate to perform all the work necessary to administer the new and existing loans.

Maybe they'll contract it out, just like they do with Medicare.

19 posted on 09/17/2009 8:54:02 PM PDT by freespirited (Liberals are only liberal about sex & drugs. Otherwise, they want to control your life. --DHorowitz)
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To: comebacknewt

“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.


20 posted on 09/17/2009 9:08:54 PM PDT by headstamp 2
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To: rabscuttle385

Young men and women:

You are truly screwed.

0bummer owns your colleges, college loans, home loans, car companies, future earnings, and he’s making a bid for your body.

Hope you don’t mind slavery. It’s all yours for the next 60 years!


21 posted on 09/17/2009 9:59:27 PM PDT by Uncle Miltie (NEXT: Sting ACORN on Voter Registration.)
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To: All

Wasn’t it the stimulus bill that had provisions for government student loans in exchange for 3 months of service in the youth corps?

Perhaps it’s more about that than anything else.


22 posted on 09/17/2009 9:59:31 PM PDT by conservativegranny
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To: rabscuttle385

The Uber State is emerging.


23 posted on 09/17/2009 10:08:37 PM PDT by Mad_Tom_Rackham (It is the duty of the patriot to protect his country from its government -- Thomas Payne)
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To: Carry_Okie

This is so FAR unconstitutional as to be laughable.
_______________
It is, and apparently most are fine with letting the government takeover everything and live their lives as slaves. I’m close to being over it and moving.


24 posted on 09/17/2009 10:18:15 PM PDT by mojitojoe (Socialism is just the last “feel good” step on the path to Communism and its slavery. Lenin)
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To: Uncle Miltie

Hope you don’t mind slavery. It’s all yours for the next 60 years!
_____________
This country isn’t the only game in town. Honestly, if the majority here, chooses to live under tyranny, I don’t want to be here anymore.


25 posted on 09/17/2009 10:20:01 PM PDT by mojitojoe (Socialism is just the last “feel good” step on the path to Communism and its slavery. Lenin)
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To: rabscuttle385
Better get onboard with mybarackobama.com if you want to get a student loan now.
These democrats are just a bunch of power hungry crazy bastards.
26 posted on 09/17/2009 10:23:44 PM PDT by smokingfrog (No man's life, liberty or property is safe while the legislature is in session. I AM JIM THOMPSON)
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To: conservativegranny
Wasn’t it the stimulus bill that had provisions for government student loans in exchange for 3 months of service in the youth corps?

Exactly. I think this is where it's headed. And it was all done quietly, with no announcement and no debate that I can see.

27 posted on 09/18/2009 2:59:06 AM PDT by livius
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To: Bloody Sam Roberts

ping....

this had better fail in the senate! this had better not affect MEFA....


28 posted on 09/18/2009 7:45:39 AM PDT by Mrs. B.S. Roberts
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To: montag813
Why anyone would take out a student loan for anything other than MD, lawyer or engineering is beyond me.

You aren't serious, are you?

I have two kids in college....state schools....nursing program. There's no way in Hades we could afford to pay for it without loans. We make a good living...but paying ~15K per year for two kids? Gimme a break.

29 posted on 09/18/2009 9:08:22 AM PDT by Bloody Sam Roberts (An armed man is a citizen. An unarmed man is a subject.)
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To: Blood of Tyrants
Actually, smells like a tax increase to me...

Still, wouldn't it be nice to reprise Obamacare with this, and tell the universities "We'll decide how much we pay you per graduate - 50%? 40%? And don't bother raising tuition, because reimbursement is capped at $5000."

30 posted on 09/18/2009 9:14:32 AM PDT by bt_dooftlook (ACORN = Another Communist-Overrun Rats-Nest)
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To: montag813
My son is a junior in a Business major/accounting degree at a state University. The tuition is $13,500.00 a year. We saved since he was in Kindergarten, and yet, last year when his tuition was due, the stock market tanked. We lost almost half of one of the mutual funds that we had to pay for it (we had last years tuition segregated, so last year wasn't a problem.

Our son is paying half his tuition, we are paying the other half. The day after he graduated high school, he was to start his summer job working at a local factory. In previous years college students made about $6,000.00 a summer for their work. Because of the recession, his job was never started. They put a hiring freeze on, and did not hire even a single student (and haven't since). He thankfully was able to get his old job back at a grocery store, and made a whopping $1,500.00 for the whole summer. So for him, student loans are a necessity, regardless of all our pre planning.

My husband has been laid off almost as much as he has worked for the last year (for a while, it was one week on, one week off). It is at the same factory my son had hoped to work for. We are now seeing our savings vanish, and we now have to make a very hard decision. Do we take out a Plus student loan for this semesters tuition, or do we wipe out almost the rest of our non-invested savings? Do we put ourselves in financial risk for our sons future, or do we just let him throw away the past two years of Dean's list education? He is working part time to pay for all the extra expenses, food, gas etc, so him doing more isn't an option.

Anyway, after my rant, that is the reason someone besides a MD would take out a student loan.

31 posted on 09/18/2009 9:22:44 AM PDT by codercpc
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To: codercpc
Anyway, after my rant, that is the reason someone besides a MD would take out a student loan.

You misunderstood my point. It has nothing to do with finances. I just have come to believe that college itself is pointless for young people unless they plan to use it for a specific skill set that one can only receive from a university, such as medicine, law, or engineering (borderline, one can teach oneself that but usually requires some accreditation). I will elaborate on my reasons for that later on.

32 posted on 09/18/2009 10:55:48 AM PDT by montag813 (During times of universal deceit, telling the truth becomes a revolutionary act. -George Orwell)
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To: Bloody Sam Roberts

You misunderstood my point. It has nothing to do with finances. I just have come to believe that college itself is pointless for young people unless they plan to use it for a specific skill set that one can only receive from a university, such as medicine, law, or engineering (borderline, one can teach oneself that but usually requires some accreditation). I will elaborate on my reasons for that later on.


33 posted on 09/18/2009 10:56:39 AM PDT by montag813 (During times of universal deceit, telling the truth becomes a revolutionary act. -George Orwell)
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To: muawiyah
There are no savings possible in this process.

Look for federal loan issuers to have a preference for Leftist Studies majors, and others unlikely to pay back their loans.

34 posted on 09/18/2009 11:04:08 AM PDT by PapaBear3625 (Public healthcare looks like it will work as well as public housing did.)
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To: tbw2
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.

Getting a college degree is the gateway to getting a professional job. And Obama is going to appoint ACORN to administer seeing to it that only the "correct" people get through the gate.

35 posted on 09/18/2009 11:07:02 AM PDT by PapaBear3625 (Public healthcare looks like it will work as well as public housing did.)
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To: bt_dooftlook

Some moonbat leftist in the House has already said that the funding will be restored when the final bill goes to committee.


36 posted on 09/18/2009 12:20:31 PM PDT by Blood of Tyrants (The Second Amendment. Don't MAKE me use it.)
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To: montag813
You are correct about specific skill sets. Sorry I missed that.

I wish we didn't live in a society that values a degree to the point that an experienced individual without one will almost always earn less that one who does.

Good reason to become your own boss at all costs.

37 posted on 09/18/2009 12:35:19 PM PDT by Bloody Sam Roberts (An armed man is a citizen. An unarmed man is a subject.)
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