Comments on: Private Student Loan Lenders Prepare for Battle

By: Ryan @ SpendOnLife

Ryan @ SpendOnLife — Wed, 29 Apr 2009 20:54:52 +0000

I wonder at want point does the expense of college become a deterrent to so many kids that we actually start seeing fewer kids in higher education each year?

By: standupforstudents

standupforstudents — Wed, 22 Apr 2009 20:21:14 +0000

I know we are dealing with the Federal government here but…….currently, I believe, the proposal is to cut out the middleman (private lenders) and originate all the loans through the Direct Loan program, as it relates to loans backed by the government. This means that the Federal government will be the lender but, for the servicing, they currently have a bid out (to be decided soon) on private companies servicing the loans so, most likely, you will deal with a private company once you have the loan. In my opinion not a good idea either if it is one of the current private companies responsible for many of the hardships students now face. The $94 billion savings is supposed to be put into the Pell grant program so that more students can get grants – not loans- to assist with the cost of their education (a very good idea.) As far as reading goes, if you google FFELP, you should get all the current news items on this debate. Also, if you google, let’s say, Sallie Mae (a private lender), you will find millions upon millions of postings of real experiences that almost 100% fall into the negative category – this will illustrate the problem with allowing things to remain as they currently are. Let me just say that the current debate is about Federally backed loans, not private loans. That is a much, much, much, larger problem that has caused a tremendous amount of hardship and, in my opinion, needs to be super regulated, if it exists at all. Just about anything would be preferable to what we now have however, I believe we should insist upon the correction of what has been done that has caused so many young Americans to have no hope – all for the want of making private companies richer.

By: Irina I

Irina I — Wed, 22 Apr 2009 19:16:58 +0000

I like this post and agree that the subsidies should stop. However, what would be the result of that? Will there be a program that uses that $94 billion more efficiently to help students get a higher education or will that money just evaporate in the federal budget?

Before calling my Congress person or Senator, I would like to know the answer to those questions. Could you point me to some reading?

Thank you!

By: standupforstudents

standupforstudents — Wed, 22 Apr 2009 17:19:48 +0000

I sympathize with all the students caught in the trap of student loan debt and I especially feel that the private student loan holders are in the most trouble. These are loans with ZERO consumer protections and the only for-profit consumer loan in the country that is void of bankruptcy protections. Why we have allowed, and continue to allow, Congress to award lobbyists with such “gifts” at the expense of our young is beyond me. To me, this is something that is shameful in the highest degree. The only way this will change is for EVERY student and EVERY parent and EVERY person who cares about our young adults, to ban together and DEMAND that Congress start looking out for us. This will require them to allow the President’s change in FFELP, restore all consumer protections and restore bankruptcy protection, at a minimum. This needs to apply to all current and future, and very important, all the students who have previously been hurt by the actions of Congress, former students. Additionally, as a non-lawyer, I am curious why all the new and current lawyers who have been hurt by this problem do not take it on in the courts. There are many areas that are crying for a lawsuit, particularly with the private lenders. I think ACTION on our part is the only thing that will work and part of that action is contacting all your representatives, from the top to the bottom, and making sure they understand that if they do not correct this injustice, they will not be re-elected.

By: My Journey

My Journey — Wed, 22 Apr 2009 16:49:18 +0000

I have absolutely NO proof – but I feel like the college education system as we know it is a bubble about to burst. Loans will stop coming in and the 8% increase in tuition every year will have to cease and tuitions will have to come down – Because it unjustified.

Why is there an increase in tuition every year anyway? Do professors’ salaries really increase that much?

By: Clair Schwan of Libertarian Logic

Clair Schwan of Libertarian Logic — Wed, 22 Apr 2009 00:17:30 +0000

The sooner we get the federal government out of education (and many other activities), the better. Education is something that should be home grown, not a federal issue.

A similar scam is used by various industries across the country. The federal government pledges money to help other nations, and U.S. consultants end up getting most of that money funneled right back here, instead of being used by the other countries. It’s another form of corporate welfare.

Anytime you have a big pile of money controlled remotely by a handful of people, there will be lots of folks trying to figure out a way to get a share of it. If the pile of money is in local hands, it’s easier to keep an eye on it and influence how it’s used.

Clair