[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.