Student Loan Consolidation Programs

The senate just passed a Student Loan Stabilization bill, read the rest of this article to get this breaking news.

The new bill is designed to stabilize the student loan industry by allowing the Department of Education to inject money into the market. The Bush administration backed this bill as did many others from both sides of the isle including Senator Kennedy.

Investors have been scared by the sub-prime mortgage crisis and another recent bill cut federal subsidies to the industry dramatically so as a result this stabilization bill has been endorsed very widely.

"Millions of families are facing difficult economic challenges at every turn. With this legislation, their children's college dreams won't become the next victims of today's troubled economy," says Senator Edward Kennedy.

 

Posted by nicod3mus at 07:01 PM | Permalink | Comments (0) | TrackBacks (0)

Bush tells the Congress that they should give the government more authority to buy student loans from banks and private companies. Read the full article to find out exactly what he said.

"The recent credit crunch makes it uncertain that some students will be able to get the loans they need,'' Bush said at the White House press conference. "Congress needs to pass a bill that would temporarily give the government greater authority to buy federal student loans.''

According to Bloomberg more than 50 lenders, or 14% of the private student loan volume, have withdrawn from the guaranteed student-loan program. This is a direct result of the credit crunch that our country is currently facing, predatory student  loan lending practices, and the recent legislation that cut federal subsidies to private student loan lenders.

I do not think this is the right course of action personally, why not reform the student loan and education funding systems we have in place instead of buying up all the loans and bailing out the lenders that have been making so much money at the cost of our students. 

Posted by nicod3mus at 03:52 PM | Permalink | Comments (0) | TrackBacks (0)