This is a damn good question. By including this in the healthcare reform legislation, it has the slimy feel of pork. Does anyone out there know WHY it was included?
it was included because they had to make the Bill, budget neutral....
The saving from the student loans being direct verses through the middle man. ..saves money, money they have used to fund the health care bill....is my understanding of why it had to be in there.
So it was done to make it deficit neutral; but at the cost of an entire industry?
Do you not fear this becomeing more commonplace as our debt increases annually?
government student loans that the private sector issued, were a guaranteed profit for the banks.....while the government took the losses.
tax payers funded the bank's profit and paid for the bank's losses...
this is not right imho, and if there is a way for us tax payers to not constantly give this kind of corporate welfare, the better off, we will be.
this does not stop students from trying to take out a private student loan from the banks...but they will have to qualify for such loan....making it more difficult, without the gvt backing and pledge for the student.
i am not certain on your last question....i would need to read up on it more first, to look at all consequences of such changes, like with VA loans....i need more details on how it works now.