Obama a Partisan President

[Andy A]

Nothing to apologize for.....perhaps from me for getting an old fart's blood pressure up....

Been around former Army Aviators for almost Two decades now. I do know that they can be a tad high strung.....


Semper Gumby......

The "high strung" part you have right.

 

[beachFool]

I can assure you that private funds will still be coming from banks, student loans are a very complex financial model, and there's just no way the banks would have allowed this.

The government will take over the servicing portion of loans, this means that interest subsidies normally paid by the government to private servicers will stop.

I just don't understand why would anyone find fault with this.

 

[Matt J]

[/U]

I just don't understand why would anyone find fault with this.

The spin is that they are taking over private industry and stopping banks from offering private loans. The fact is you will still be able to obtain completely private student loans with all the benefits they entail:

- Higher interest rates
- Lack of deferral even while in school
- Lack of payment options

Those will still be available and rest assured that companies like SallieMae will continue to lobby to keep student loan caps the same as they were in the early 80's so that many people will have to use that option.