Will B
Moderator
They haven't, they just won't serve as the safety net for these private financial institutions anymore. The banks will actually have to do their own underwriting (GASP!).
From the Wall Street Journal...
The Obama administration plans to make the government the sole provider of federal student loans, ending the participation of private lenders in the program.
Under a plan unveiled in the administration's budget, subsidies to private lenders would be eliminated, and the government would use the savings estimated at $47.5 billion over the next decade to help bolster the Pell grant program for low-income students.
If approved by Congress, the plan would effectively end government-guaranteed loans to students by banks and other private lenders—lending that has totaled $56.7 billion in the current school year, and has been the primary source of college financial aid since the program was launched in the 1960s
Sorry Andy...I know you said no quotes, but I had to show that I was not incorrect...
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