Comments on: Student Loan Reform – Government Subsidies for Private Student Loans Eliminated

By: Monique

Monique — Tue, 06 Apr 2010 20:47:51 +0000

I received my undergrad and grad degree from private schools, but I only graduated with just over 50K in loans. This is nothing compared to the person who paid all their tuition with loans. It sucks that the cost of education is rising so quickly by so much, but we have to understand that we as consumers are in control. No we cannot make a change overnight, but we can overtime. Sitting around and complaining about how much we have to borrow and what the government is going to do about loans is not the answer. We can do research on schools that cost less, take advantage of high school programs that allow students to earn college credit, consider community and junior colleges, avoid name brand schools and do let the football teams success be the deciding factor in where to go to school.

By: Daddy Paul

Daddy Paul — Tue, 30 Mar 2010 22:36:34 +0000

I think the solution is to reduce the cost of higher education. Education should not cost what it does. If you look at all of the drones we are supporting at colleges you will see what I mean.

By: Smarter Spend

Smarter Spend — Tue, 30 Mar 2010 09:29:48 +0000

I don’t like how the government thinks. We are spending hundreds of billions in a war that does no good for our economy or people, but all these proven techniques have to be experimented with. At this point, I don’t know if the student loan reform is for the better… but let’s hope for the best.

By: Abigail

Abigail — Mon, 29 Mar 2010 20:52:42 +0000

Something else to consider: If there are no more government-backed private loans, the government can potentially get more of its money back.

As it is, private student loans get sent to collections, where people are offered deals like paying just 20% of what’s owed. But with the new system, the government could send collections agencies after people, but folks will have to rehab their loans, rather than simply cut a deal.

It’s a small thing, but let’s hope it means a little extra cash flow for the government. We could use it right now!

By: Ken

Ken — Mon, 29 Mar 2010 14:16:53 +0000

Surprise..surprise…something in this that actually involves cutting costs. Time will tell what the results really are.

By: Evan

Evan — Mon, 29 Mar 2010 14:05:26 +0000

I don’t see this as a cost cutting measure. I see this as yet another example of a wasteful federal gov’t getting involved in a private portion of the economy. It will eventually become mandated that the gov’t provide cheap money to anyone and everyone regardless of credit risk because a college education will be deemed a “right”

By: MFO

MFO — Mon, 29 Mar 2010 12:34:36 +0000

I’ve got mixed feelings about this. Obviously saving $61 billion of 10 years is great, however, after hearing so much about the stimulous, the omnibus, and now the healthcare bill, that number seems rather small, $6.1 billion a year.

I do like that it could potentially boost the Pell Grant program, however small the benefit may be. My question though is will that program actually recieve some of the savings.

Also, essentailly mean that the governemnt now control another chunk of the U.S. economy- student loans?