Biden: cut out the middle man on student loans

[Yurt]

Biden: cut out the middle man on student loans

....

Biden said work should be done to consolidate student loan programs, to cut out private student lenders who currently act as middlemen on many federal student loans. He said that could save $94 billion over a decade. "We can take the $94 billion and reinvest it in more loans, more grants and more access to college," he said.

Biden: Cut out higher ed loan middlemen - White House- msnbc.com

its a good idea and a good start. student loans are a flippin racket. there is no way that the cost of going to school has risen so much in so little time. but, the schools know they can simply get their students to take out high student loans. and the students willingly do so. no problem there. but cutting out the middle man on federal loans, reducing interest rates is a good start.

IMO, the reason the cost of attending college, especially graduate college, is so high is that student loans are a money maker. the schools know they can keep raising rates because student loans cannot be defaulted on anymore. and they know that students will willingly pay more to get that higher education if they don't want to take a different route in the work field. so cutting out the middle man, sounds like a good start.

edit:

i'm referring only to federal loans, if you take out private loans, you pay market rates, but the government promises something different.

 

[Mad Scientist]

Uh, I already had a low rate on my FAFSA loan.
Interest rate changes on federal student loans | FAFSA Form & Financial Aid Form Blog
On top of that, the Feds kept sending me mailers and calling me up to get me to refi that already low rate to something even lower. What's he talking about?
FAFSA sent the checks straight to my University, who is this "middle man" Biden talks about? I don't see it in the article, someone please point it out.

Does the Veep consider private loan companies to be the "middle men"?

I paid off my student loan (Over $16,000) two years ago by the way, no default.

 

[Iriemon]

Uh, I already had a low rate on my FAFSA loan.
Interest rate changes on federal student loans | FAFSA Form & Financial Aid Form Blog
On top of that, the Feds kept sending me mailers and calling me up to get me to refi that already low rate to something even lower. What's he talking about?
FAFSA sent the checks straight to my University, who is this "middle man" Biden talks about? I don't see it in the article, someone please point it out.

Does the Veep consider private loan companies to be the "middle men"?

I paid off my student loan (Over $16,000) two years ago by the way, no default.

I paid mine too. I wonder what the default rate is on guaranteed loans.

But get the IRS to collect the payments. They do a fair job, I've heard.

 

[Yurt]

in the OP:

Biden said work should be done to consolidate student loan programs, to cut out private student lenders who currently act as middlemen on many federal student loans. He said that could save $94 billion over a decade. "We can take the $94 billion and reinvest it in more loans, more grants and more access to college," he said.

you bring up a good point though....is he advocating the goverment become the direct lender? seems like it. if it saves billions and the government wants to loan money to students, go for it. the government loans crazy nations money all the time, why not loan and invest in your own citizens....

 

[Yurt]

Uh, I already had a low rate on my FAFSA loan.
Interest rate changes on federal student loans | FAFSA Form & Financial Aid Form Blog
On top of that, the Feds kept sending me mailers and calling me up to get me to refi that already low rate to something even lower. What's he talking about?
FAFSA sent the checks straight to my University, who is this "middle man" Biden talks about? I don't see it in the article, someone please point it out.

Does the Veep consider private loan companies to be the "middle men"?

I paid off my student loan (Over $16,000) two years ago by the way, no default.

I paid mine too. I wonder what the default rate is on guaranteed loans.

But get the IRS to collect the payments. They do a fair job, I've heard.

i refuse to pay mine. i sent a letter to obama asking him to bail me out....

 

[RodISHI]

YES! and SBA loans too!!!

These are loans backed by the feds and the servicing fees alone will save a mint. The abuse by the major banks in these guarantee programs has gone on way to long.

Complaints....

It’s Official - Sallie Mae is bought out! « Student Loan Info for Parents

Search, fraud, student loan modification and start reading the stories.


Had to add this one for the Obama folks on here. So many people blame Bush and all Republicans for what the banks have been doing.

gloria centeno says: February 5, 2009 at 10:29 pm after waiting for president obama to take office and be able to change from the bank bush at their discresion about helping people to keep their home, i don’t see nothing on the tart money to make the banks to comply mandatory and not at thier discretion to help people to stay in their home by reducing the principal to the real market value of the property,
their loan modification is a joke, they are doing loan modification based on the pass value of the property which does not exist, and people won’t be able to refy or sell their home, so they going to be stack with this big payment for ever, this is not right , do something president obama , don’t forget about the million of people who vote for you with the hope that you will keep them in their homes,you will be hold accountable for the millions of people who will be on the street and in welfare, blaming you for not doing what you promised to keep the people on their homes.

Added this one for shit's & grins.

Angela says: February 20, 2009 at 2:53 pmI used to work for Wachovia and a major subprime servicer. Don’t forget Wachovia purchased Golden West late in 07 and went subprime after many said it was a dying market and a bad idea. They are just trying to recover massive lossess. The pick a pay portfolio is a “joke” in the lending industry. I left the servicing company ( which used to be owned by wachovia) prior to golden west back in December 08. The last management meeting I attended on 11/08 , leaders were being yelled at for thier agents not collecting enough payments and spending too much time talking to 3rd party counselors. Customers need to remember that the banks are not here to help, they are here to make a profit. They say one thing, nod thier heads, and then foreclose on your home. Unless the govt forces them to correct and address thier misdeeds we can never return to a free market banking system. I have serviced the paper for Bear Sterns, UBS, Merrill, Citi, Bank Of America, Wachovia, Ameriquest,Lehmen haha…and I can confirm it was some of the most fraudulent, morally irresponsible, crap I have ever seen. May I remind you of Alan Greenspans comments about how surprised he was that the banking industry did not regualte itself. ( Duh!) I have spent 15 years in debt collections and have never been so embarrassed to be associated with a group of people in my life. Even when they do modifications it is with thier interests in mind not the feesability of whether or not it will work for that particular household. As a mother and a former manager who punched the budgets of thousands of customers, its not about you or your illnesses, hardships,or persoanl lives its about $$$$$$$$$ and fat banker bonuses. ( please note, of which I have not been a recipient, and glad not to have blood money in my bank account.)