Posted on 01/21/2010 5:25:00 AM PST by tunedin
(CNSNews.com) A bill currently before the Senate would empower the Obama administration to nationalize the student lending industry, eliminating the federally subsidized private loans millions of university students rely on to finance their educations.
The Student Aid and Fiscal Responsibility Act currently being considered by the Senate Health, Education, Labor, and Pensions (HELP) Committee would eliminate the Federal Family Education Loan (FFEL)program.
(Excerpt) Read more at cnsnews.com ...
The govt. ALREADY is the lender.
The gov backs the loan, protecting the lender, but when the gov is the lender, who protects us?................
... the govt. already does originate the loan and the bank is a middleman loaning fed. dollars...applicants will be more equal how? it’s not need based lending - anyone can apply.
My understanding is that the ffel program lends all federal dollars for this program and students/parents apply through one of two channels - their option: the banks or through the .gov;
The banks and the govt. have rate agreements, payback agreements etc....not like a car loan where the bank uses its capital.
I don’t see that the gov. role any different as far as the amount of money it is putting up - it pays the entire program - not “backing” it - govt even pays the interest on the loan while the students with need are still in school (subsidized stafford)
Imagine a whole new bureaucracy, unionized, of course, whose sole mission is to make sure the loans get into the hands of those that “need them”.........
They have been picking winners and losers, car companies, banks and on and on. I don’t put it past them to deny loans to folks who are not registered dimrats. Actually, I don’t put anything past this group.
“If this bill passes, the government will BE the LENDER....................”
Not only that. but the students will become indebted to the federal government with additional community service requirements. Community service might reduce the student’s individual debt. But who will decide what qualifies as community service and what organizations the student will work for? Government again. co-opting our youth.
Now we’ll get to fund the next 9/11 with student loans to all those students with expired visas our officials can’t be bothered to kick out of the country.
My niece is staying with me while she goes to a private local college in their nursing program. She can not get a student loan and has been encouraged to get a personal loan from a local bank. So much for the student loan program. She has no money, is 21 yrs. old and already has a Associates Degree. What to do, what to do, what to do. . . .
It’s currently operating pretty smoothly...funds electronically transfer between the school and the lender.
The government will put a stop to that.............
I’ve wondered what would happen if the just deny credit-worthy people loans for ffel...that’s not the current concern because the ffel already lends to 17 million people. Why can’t she get a ffel loan? If a bank would give her a loan, I’d think she might easier qualify for a stafford. The ffel’s are unsecured loans.
Applying through the school is an option but not the only way to do it. One can apply directly online with the dept. of ed and tell them which univ. gets the funds. The borrower makes the decision, not the govt. The govt. looks at the credit of the borrower based on the FAFSA. The school receives the dispursement directly if the loan is directed that way...thank goodness or you’ll have situations like octomom all over taking the money and not paying the school.
I’m not sure who makes the credit decision if a bank takes the application...I would not think that they enough skin in the game to make the credit decision since it’s not their money.
I don’t know if there is an age requirement for the ffel, is there? I just thought they had to be a student meeting the number of academic hour requirements.
Thanks for the information. I haven’t been working with her on her finances. I have the same questions you are stating and will review her options with her when she returns from classes this evening. She is a full-time student and should qualify.
Thank you.
And look where that went. The enlightenment, the industrial revolution, petro-man, and now carbon disaster. Those quill waiving morons doomed us from the start.
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