Modbert
Daydream Believer
- Sep 2, 2008
- 33,178
- 3,055
- 48
Obama to sign new student aid initiative | Reuters
Let's recap:
1.) Middlemen bankers are cut out, a federal program is now being once again run by the federal government.
2.) Student loan payments are capped at 10%.
3.) Save $68 Billion over 10 years.
4.) Expand the Federal Pell Grant Program
5.) It's approved by the majority of Americans.
Now I understand the Republicans especially are complaining about governmental takeover. But how exactly can the government take over a program that is both funded and run by the government? I'm not exactly catching that logic.
As someone who gets both student loans and pell grants to pay for my education, I have no problem with this.
What say you USMB?
(Reuters) - President Barack Obama on Tuesday will sign into law an overhaul of the college student loan program which cuts commercial banks out of the student loan business, drying up a multibillion dollar profit stream.
The student loan overhaul fulfills a long-time goal of Democratic lawmakers to end the bankers' role as middlemen and replace them with direct federal loans and aid to students.
The White House said the change would save taxpayers $68 billion over the next decade. The money saved will help expand and strengthen the federal Pell Grant program for students.
The change will cap college graduates' annual student loan repayments at 10 percent of their income, spends more at community colleges and awards $2.55 billion to historically black colleges and universities.
While the healthcare overhaul itself has generated skepticism among many Americans worried about its cost and associated debt, the student loan changes have been popular.
The CNN/Opinion Research Corporation said last week a telephone survey of 1,030 adult Americans found 64 percent of respondents approved it, while 34 percent opposed it.
Let's recap:
1.) Middlemen bankers are cut out, a federal program is now being once again run by the federal government.
2.) Student loan payments are capped at 10%.
3.) Save $68 Billion over 10 years.
4.) Expand the Federal Pell Grant Program
5.) It's approved by the majority of Americans.
Now I understand the Republicans especially are complaining about governmental takeover. But how exactly can the government take over a program that is both funded and run by the government? I'm not exactly catching that logic.
As someone who gets both student loans and pell grants to pay for my education, I have no problem with this.
What say you USMB?