Congress kicks out private education loan companies

Discussion in 'Congress' started by DavidS, Sep 19, 2009.

  1. DavidS
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    DavidS Anti-Tea Party Member

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  2. Modbert
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    Modbert Daydream Believer Supporting Member

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    Essentially this:

    Though hopefully this would be within the next few years. I currently have two loans with Sallie Mae for college, and all this essentially does is cut out the middle man who the Government would give money to, then they would give it to the college student for a fee.

    The Pell Grant is very important to many college students including myself, so seeing that expanded faster would be nice. However, I would of liked to see more done about loans.
     
    Last edited: Sep 19, 2009
  3. Polk
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    Polk Classic

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    Banks can still offer personal education loans. The change removes them from giving out loans that are backed by the government. It's a good move to do so, since the current system is effectively the government paying them to issue loans. They don't assume any risk (since the loans cannot be discharged in bankruptcy and are backed by the government), but profit from the interest payments. All this bill does is cut out the middle man.
     
  4. geauxtohell
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    geauxtohell Choose your weapon.

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    I was glad it happened, and I just went through the loan process. Prior to that, I had to switch banks 3-4 times, because so many of them got out of the loan process when during the bailouts.
     

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