[ZeonOne]

(2010.May.12 09:27 AM)mblume Wrote:  Anyone planning on going to college via student loans should also read the health care bill. The wonderful pres stuck the student loan reform bill into the health care reform because it was the only way to get it passed. HUGE changes are in store for those using federal funds to pay for college.

Basic summary...

The HUGE changes in student loans will cut out the unnecessary middleman in college lending, the private commercial lenders who originate the student loans and collect fees from both the borrowers and the federal government for their efforts.

Proponents say that having the federal government directly issue the student loans will free up about $61 billion over the next decade that can be used for loans to help more families meet soaring tuition costs.

However, this will destroy the middleman private student loan lender business.

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(2010.May.12 08:45 AM)Punisher Wrote:  its so interesting that all these people are in favor of healthcare reform, but the politicians that voted this monstrosity through didnt even read it...so how the heck can you be for something you dont even understand....our system does need help, but my god not what is coming our way....its not gonna be pretty, i hope things dont end up like they are structured to do so...wait a few years then you will get what you want

It's a double edge sword. If nothing is done, wait a few more years, thousands and thousands more American will not have health insurance. With the republican moving from the right to the extreme right, nothing will get done for another decade.

[mblume]

(2010.May.12 11:46 AM)ZeonOne Wrote:  

(2010.May.12 09:27 AM)mblume Wrote:  Anyone planning on going to college via student loans should also read the health care bill. The wonderful pres stuck the student loan reform bill into the health care reform because it was the only way to get it passed. HUGE changes are in store for those using federal funds to pay for college.

Basic summary...

The HUGE changes in student loans will cut out the unnecessary middleman in college lending, the private commercial lenders who originate the student loans and collect fees from both the borrowers and the federal government for their efforts.

Proponents say that having the federal government directly issue the student loans will free up about $61 billion over the next decade that can be used for loans to help more families meet soaring tuition costs.

However, this will destroy the middleman private student loan lender business.

What the administration isn't telling everyone is that what was just made into law is the same student loans business that Bill Clinton introduced to college bound kids as an OPTION to going thru the middleman. When that happened, the govt's program gained only 18 % of the market, at the peak of their business. That means 82% chose NOT to go that route, but now there is no choice in the matter as it is the law.

[ZeonOne]

Exactly, Government is not good at doing business.

Do you want to pay a middleman for a service? I sure don't. I know people who pay 6 percents interest in student loan by going through a middleman. Oh, it gets better. The government offers tax refund on those student loan interest when you file tax return.

In the end, everyone is paying for the middleman dude.

[mblume]

(2010.May.12 12:13 PM)ZeonOne Wrote:  Exactly, Government is not good at doing business.

Do you want to pay a middleman for a service? I sure don't. I know people who pay 6 percents interest in student loan by going through a middleman. Oh, it gets better. The government offers tax refund on those student loan interest when you file tax return.

In the end, everyone is paying for the middleman dude.

What the middleman has, and gets paid for, is the handling and servicing of the loans. Where is the govt going to get enough people to service millions upon millions of student loans? How about collecting on the loans in default? This all assume they have enough people to actually originate the loans to begin with. They will lose A TON of money on this, when they could have continued to pay the middleman a tiny fee.

In addition, a majority of the schools that are now forced to go direct to the government specifically avoided doing that and going thru the middleman when they had the choice to do so.

Obama knew it wouldn't pass on it's own, that's why he "rode" it in the health care bill.

EDIT: Oh, and the loans are still tax deductable in either case. That is not at all part of the issue.

[Dingus]

Vote Harry for Middleman!

[mblume]

(2010.May.12 12:24 PM)Dingus Wrote:  Vote Harry for Middleman!

No thanks, just REALLY dislike sneaky politicians...on either side.

[ZeonOne]

People can be hire. Not an issue.

Default student loan can go to collection agency, which is what the middleman is doing anyway.

If the middle guys are still in business, that meant they are not losing money. Why would the government lose tons of money? It just doesn't add up buddy.


The point is why let the middle guy take our hard earn money? We should pass it on to those parents who are trying to get their kid to school.

[Monk]

(2010.May.12 12:30 PM)ZeonOne Wrote:  People can be hire. Not an issue.

Default student loan can go to collection agency, which is what the middleman is doing anyway.

If the middle guys are still in business, that meant they are not losing money. Why would the government lose tons of money? It just doesn't add up buddy.


The point is why let the middle guy take our hard earn money? We should pass it on to those parents who are trying to get their kid to school.

or you should just live on free health care, food stamps, government housing, welfare, and proceeds of crimes like the rest of America.

[johnsonhalo76]

(2010.May.11 09:31 PM)Punisher Wrote:  we just need more kids working and not playing halo

why bring me into this? i work and go to school, if i have free time i'm not gonna go kill myself outside where it's 110 degrees. not even the mexicans work during the day here

edit: i know i'm a day behind i was prepping for ap testing so shove it

[JakeBlues]

Attention mods, your modding sucks big time.

This topic has gone way far from its original subject.

It should be splitted about half a dozen time and moved into the appropriate forum section.

Thank you for removing your foot from your ass.