Student Loan & Consolidation Program Borrower Benefits Cut
Borrower benefits for private student loans are being reduced due to the new College Cost Reduction Act of 2007. I have long criticised the act as the wrong way to reduce the cost of education in this country. The Wall Street journal recently wrote an article outlining how borrower benefits are already being cut as a result of lender subsidy cuts that pay for increases in Stafford, Pell, and othe need based loans.
If you need more money than the need based programs can supply to finish school (and the majority of student do) then you are already falling victim to the new College Cost Reduction Act of 2007. If you don't qualify for the need based programs at all then you are going to get hit the hardest.
The College Cost Reduction Act of 2007 takes money away from lender subsidies to increase the need based assistance that rarely pay for an entire 4 year degree program. In other words it takes from the working and middle class student in the end.
Here is a great student loan and student loan consolidation program article from the Wall Street Journal Online outlining this very issue. Here's the link:
http://online.wsj.com/article/SB119128234857945763.html?mod=googlenews_wsj
