Obama buying students and increasing debt?

[Yurt]

got this in an email.....

The government budget outline proposes offering federal student loans solely through the federal government's Direct Lending Program starting July of next year. While this proposal will not impact a borrower's ability to obtain a federal student loan, it will eliminate your ability to choose a student loan provider. It will also substantially increase the national debt since each and every federally-insured student loan will be funded by the Federal Treasury through the issuance of treasury securities. This proposal impacts you as a citizen - both as a taxpayer and as a borrower.

 

[justabubba]

just as small business/sba government guaranteed loans are off between 50 and 70%, depending on the program, because lenders are now reluctant to make loans. even with a federal guaranty. lenders are similarly unwilling to make the volume of student (government guaranteed) loans which were previously available to our nation's youth, before the financial meltdown

if we want our kids to be able to attend school, funding is going to be necessary
seems like a good use of federal dollars ... especially when compared to the trillion dollar bush regime transfer of money from the US taxpayer to replace the losses of the wealthy. those who gambled their own money away on derivatives, over-rated securitized mortgages, and oil futures

 

[Barb]

got this in an email.....

The government budget outline proposes offering federal student loans solely through the federal government's Direct Lending Program starting July of next year. While this proposal will not impact a borrower's ability to obtain a federal student loan, it will eliminate your ability to choose a student loan provider. It will also substantially increase the national debt since each and every federally-insured student loan will be funded by the Federal Treasury through the issuance of treasury securities. This proposal impacts you as a citizen - both as a taxpayer and as a borrower.

As they were, the loans were already guaranteed by the fed, under the new system, the loans are made by the fed with no kickback to lenders from the fed as it has been in the past, it. The taxpayer gains in this, as it cuts out an unnecessary middleman.

 

[Zoom-boing]

I thought I read that there maybe an additional string to these loans in the form of some kind of service to the country after graduation. Does anyone know anything about this?

 

[justabubba]

I thought I read that there maybe an additional string to these loans in the form of some kind of service to the country after graduation. Does anyone know anything about this?

by agreeing to perform defined forms of public service the graduate can eliminate student debt year-for-year

 

[MaggieMae]

I thought I read that there maybe an additional string to these loans in the form of some kind of service to the country after graduation. Does anyone know anything about this?

You're thinking of the Community Volunteer Service, which awards grants for higher education based on volunteer work.

Learn and Serve America > Students

There's no strings for federal student loans that I'm aware of other than interest.

 

[MaggieMae]

I thought I read that there maybe an additional string to these loans in the form of some kind of service to the country after graduation. Does anyone know anything about this?

by agreeing to perform defined forms of public service the graduate can eliminate student debt year-for-year

But ONLY if it's a federal student loan, not a private loan.

 

[Zoom-boing]

I thought I read that there maybe an additional string to these loans in the form of some kind of service to the country after graduation. Does anyone know anything about this?

You're thinking of the Community Volunteer Service, which awards grants for higher education based on volunteer work.

Learn and Serve America > Students

There's no strings for federal student loans that I'm aware of other than interest.

Probably that's what I"m thinking of but I thought I read something else about college loans if they cut out the banks . . . I don't know. I'm concerned about this especially if it's a subsidized loan (gov. pays interest) and they put a community service string on it. This is just another power grab to grow the government, imo.