Student loan overhaul

abe23

abe23

Active Member
This is part of the reconciliation bill now. Instead of letting private banks get federally guaranteed loans, they're cutting out the middleman and administering loans directly, which will save 61 billion $ between now and 2019. That difference will go to fund pell grants, which help low-income people get scholarships.

Is anyone against this? Is it a government takeover or just common sense?
 
Rob Roy

Rob Roy

Well-Known Member
abe23 said:
This is part of the reconciliation bill now. Instead of letting private banks get federally guaranteed loans, they're cutting out the middleman and administering loans directly, which will save 61 billion $ between now and 2019. That difference will go to fund pell grants, which help low-income people get scholarships.

Is anyone against this? Is it a government takeover or just common sense?
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If cutting out the middleman is good, why not go back to a smaller government?

I wonder if the administration of these loans will be done by bureaucrats that are not getting paid? I think not. That $61 billion savings is a pipe dream. It won't happen.

When was the last time government ever outperformed the free market? Certainly not in education.

Goverment hasn't cut out the middleman, they've BECOME the middleman.
 
medicineman

medicineman

New Member
Rob Roy said:
If cutting out the middleman is good, why not go back to a smaller government?

I wonder if the administration of these loans will be done by bureaucrats that are not getting paid? I think not. That $61 billion savings is a pipe dream. It won't happen.

When was the last time government ever outperformed the free market? Certainly not in education.

Goverment hasn't cut out the middleman, they've BECOME the middleman.
Click to expand...
Cutting out the loan sharks is a very good thing. The state of student loans has been going down hill for years. At least now, the student will know who he owes and not have his loan bundled and sold to the highest bidder.
 
N

NoDrama

Well-Known Member
It will only make schools more expensive to attend. State colleges derive 75-85% of all tuition money from the government pell grants and student loans as it is. Follow the dots and connect them and you will see the rise in tuition is due to all the government financing that is already being done.
 
ViRedd

ViRedd

New Member
Government is always expanding its power. Think about this for a moment: If you want a government student loan, you will have to agree to "volunteer" your time as a "community worker" for a two year period. What do you want to bet that this is coming down the road?
 
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