no more corporate welfare (at least not via student loans) for the banks. These
changes should have been implemented long ago. No more corporate welfare
(they’re the biggest welfare (taxpayer money) recipients).
What does Obamacare have to do with Student Loans? Riders on bills should be
The way I understand it, if you service the loan you are putting up the money.
Thay is why you get the interest. If you are going to guarantee the loan, you
are an insurance policy. In the past, the banks serviced the loan--put up the
money. Now the government will. Hmm...where will that money come from? In the
past, the government only guaranteed the loan--money was only needed for
All of you complaining about this provision have obviously never paid a student
loan. So stay out of the conversation! For all of you who have, you know this
provision is a good thing... I'm currently in the starting stages of paying
back law school loans. Most of the loans came through the federal government,
however, for some reason my school initially signed me up for private loans. So
about 10% of my loans are administered by a private lender (Citigroup)... I only
found out that Citi was handling a part of my student loans by mistake. I've
never recieved any correspondence from them. When I try to view my information
online, the information is bare to the bone. Very minimal and hard to gauge.
It's like they want to keep me in the dark about what I owe and my repayment
options! Working with Direct Loans (federal) is like night and day. Seamless
and very transparent. This is a great provision because it essentially takes
away free money from these private lenders. For true capitalists, let those
private lenders go out and earn it!
If I were a communist, i'd be happy today. Nyet.
Socialized insurance?? You believe corporations a socialistic? What happened to
education in Utah? This is frightening.
This is yet another step the DemoRats are taking toward socialism -- the
government controlling business. This health care bill will mean permanent
economic stagnation. Because of it, we will never again see the prosperity of
the past.The student loan provision is unconstitutional -- read the
9th and 10th amendments. The federal government can only regulate commerce, not
"...monopolizing the student-loan industry...?" They took Nelnet's job! I had
three loans going through school. Every one was through a local financial
institution. Every one was then sold off to one company: Nelnet. Why are
concervatives so upset the fed is taking the banks out of the loop of what was a
federal program anyway? Oh, that's right, for all their belly-aching, they still
love a government subsidy.
To the person who commented that people should work their way through
college:Did you notice that Universities and colleges in Utah are
implementing tuition increases of 10% this year and next. College is not
affordable. Check out tuition costs. They are very expensive.
I think that should say "can not"
how many students will now qualify for PELL grants (costing the government
millions more) because they can come off their parents insurance, enabling them
to use only their income as the qualifier for a PELL grant. Many students now
living on their own, can qualify becuase they have to use their parents income
in order to stay on their insurance. Since we now have socilized insurance,
they can now go into the "free" pool. One of many brilliant ideas I'm sure that
were "snuck" through.
be so massively uninformed? I sure hope this comment board doesn't
reflect the best minds of Utah. If so, I am very afraid.
You Obama haters/Republican ideologues amaze me! The federal
government has been subsidizing/guaranteeing the private student loan industry,
which has allowed banks to reap billions in risk-free profits without adding any
value for years. Any true FISCAL CONSERVATIVE (which I am) is infuriated by
that process. The current changes strip out the unnecessary middle man that
added no value. I am very, very confused by any purported fiscal
conservative/free market advocate who has a problem with that.C'mon
people, PLEASE start doing some independent reading and thinking!
The only good difference between the health care bill and the student loan
provision is that, no one is forced to get a student loan. Oh, wait that is
coming, everyone will have to get a loan to go to college, that way the
government can control what you study and where you go. Can anyone say, "back in
In this bill it did not touch the Federal Perkins Student Loan. It will still be
administered through the school, and paid back to the school, so it can fund
another student. At a 5% interest rate, you can't beat it.
(Natalia) "Martinez, originally from New Jersey, said private lenders charge too
much in fees and interest, which the federal government keeps low. With Utah's
comparatively low tuition, she said it is entirely possible to attend school on
Pell grants alone."Correction/clarification. This article is about
fedearl student loans. Private lenders, i.e. banks and credit unions, have
traditionally made federal student loans which have fees and interest rates set
by the federal government. The rate is the same as the direct loans this bill
now imposes on everyone. Some private lenders also make private education loans
which do have higher rates than the federal student loans they also provide.
Don't confuse the two.Historically, the banks and credit unions have
charged lower fees than the federal government has and will continue to charge
on student loans. They could do this because private lenders and loan servicers
are more efficient than the government. Thems the facts, ma'am!
You don't have to be liberal to appreciate this provision, just have a student
loan. Anyone who's done their research knows this is the government coming full
circle over 50 years. The critics arguments are disingenuous and half-hearted.
This is something students have wanted for a long time. "One size fits all"
actually works great for loans, and the various repayment plans put out by the
government are for more tolerable than any bank or credit union could afford.The only thing that actually changes is the way the money is accounted
for in the federal budget specifically, it's accounted for). The government has
been servicing these loans since their inception and the ill-conceived "let
private business handle them so they don't show up on the budget" plan has
finally come to a just and inglorious end.
I agree broke 27. Dealing with UHEAA is a nightmare, but do you REALLY think
going from a state gov agency to dealing with the FED is going to be better?!!
I deal with both the state and FED government on a daily basis. I also deal
with county and city governments. I can tell you one thing for sure, the larger
the government agency, the worse it gets. And I am not talking several times
worse, its exponential! Having the FED take over something like student aid
will NOT make things easier, just worse. The fed should only be responsible to
keep interstate commerce fair, keep a standing army, and regulate international
trade. Other than that, the closer to home programs are run, the better.
Where is the total disclosure? Where is the open policy? Are we again be
duped? I don't want the government in control of my student loans. They can't
even take care of what money they have now. This is supposed to save
money? Really how many times have we heard that? What is going to happen is
the government will not be able to handle it and have to pay to outsource it
thereby paying more for it then now. and they the costs will be passed on to
Sorry but student loans adminstered by the federal government will not benefit
you at all. It will cost you more and your service will most likely be reduced
(can you say Driver's License Division?).This bill does not save
students money because the interest rates are still the same. What it does
though is remove private funds from the marketplace and uses Treasury funds for
student loans. This article incorrectly indicated that student loans have been
funded federally for years and that banks were just the middlemen collecting
fees. True about the fees but the banks used their money to fund the loans, not
federal monies.Recent credit markets and increased costs forced
banks out of the student loan market. The only benfit this bill offers is a
stable source of funds until China calls their loans due. It does not provide
any savings for student borrowers as interest rates are still the same. Good luck dealing with the feds on your student loans while trying to
figure out why you can't get a referral from your family physician to see a
specialist for that tumor in your stomach.
@Cedar ConstitutionalistYour so far away from Ben Franklin or the
constitution. I hate it when people spout on these boards "constitution" or
Socialist-Communist. Those two words aren't even the same thing. What does
your comment even have to do with the changes in student loan banks being cut
off? All you people who think private greed mongering capitalists have all the
answers are fools. Big business never looks out for the middle class. Banks
are only interested in ripping us off and big government welfare - take a look
at where tarp funds went and big bonuses those 1% at the CEO's get. Business
will never run government. Our constitution didn't say "bail out banks" and
give them student loan cash either.
@ annonymous @8:45A generation ago you could work and pay for college -
yes, my tuition was about $200. a semester! It wasn't $5000.+ a semester! Books
didn't cost $150+ for one book either! College housing and FEES weren't
expensive either. Obviously you haven't paid any tuition lately. Of course we
could work during the summer and pay for school AND live in the dorms. Do you
honestly think a young person could make that much over the summer? My daughter
made less than $3000. last summer. By the way, we did save for our kids college
education - and due to the economy our investment is worth half as much as it
was 3 years ago. Welcome to my world - you don't know what your talking about.
If you've ever owed UHEAA for student loans, you know what a nightmare it is!
Sure the loans went through a 3rd party bank for about 5 minutes, then onto the
monolith UHEAA. College education is way too expensive. Nothing like watching
a young person crippled by upwards of $25,000+ in student loans that they can't
pay off and many don't finish the degree anyway! They have young families,
can't discharge any of this in bankruptcy (student loans and child support - a
big debt prison). I only took out $8000. and it was a nightmare to deal with
UHEAA - they don't credit payments, confiscate tax returns and put judgements
against wages. Entry level wages are almost nothing, if you can get hired at
all in your field. Most college students think they will make SO much more when
they graduate than they do. I'm glad this is in effect because the 3rd party
banks don't do a thing, but cash in on students. Pell grants don't even cover
full tuition or books anymore and the cost keeps sky rocketing. Is a college
degree even worth it?
To the person who suggested everyone should "work" his/her way through college,
as he/she did a generation ago, please understand that the cost of getting an
education has increased exorbitantly. In fact, evidence routinely shows that
tuition prices have inflated much higher than anything else (standard of living,
etc.). Do you know how much an education costs today? It is A LOT more than it
was a generation ago, so you are being unrealistic to suggest that people should
be capable of paying for an education while simultaneously working.
"When the people find they can vote themselves money, that will herald the end
of the republic" Ben Franklin had that right.
When you go to church, walk through your neighborhood, go to the grocery store,
a portion of the people you see there are those who work and receive their
paychecks from the "greedy banks". They are people just like you and me. Take a
look at where your family receives its paycheck. Do you want government to
regulate it to control the "greedy" owners? They say they are taking over
private industry to save us taxpayers from the "greedy" owners. I don't believe
A generation ago, most of us got through college without loans, grants or any
government help. How did we manage that? we worked while we went to school. Our
parents saved up money (there's a novel idea) so they could help us go to
college. Obama hates the banks for lending too much to home buyers, but he's all
over loaning money to students who don't even have a job? Do yo see a pattern
here? where is this leading? Let's not all be so stupid.
I am glad that the thieving banks are out of the loop for student loans. It was
an easy way for them to make money. They risked nothing; it was the tax payers
who risked bad loans. The banks just collected the money.
your blindness fails to see that the Socialists would not give Boehner and team
the time of day. Did you also forget that bribery got this bill passed and that
SS and Medicare are fraudulent systems, good luck with student loans. Guess
there is really no sun in your "Dixie".
Hmmmmm......Gov't now owns a car company, has their nose in
regulating home mortgages, in about an hour they'll be the rulers over health
care and also student loans.But, hey, liberals, just remember, the
government isn't taking over anything....
10 months ago my student loan went to the federal government, which is who I
payed it to. This happened BEFORE the bill was passed.
I couldn't get a private refinance of my loan because the conservative
Rupublican state of Utah makes you refinance throught them. Not that I am
complaining. I find it ironic that people are bagging on Congress finding a way
to save $/Pell Grants when in fact the the State of Utah already pretty much
"a provision in the bill that brought Jesus back " would be just as likely to
come to pass as some of the things that are promised in the bill. Saying it does
not necessarily make it come to pass. That should be obvious at this point.
Before you make comments about how Federal student loans work, learn something
about how federal student loans work.
I like the present system, where you can choose which lender you would like to
go through. Credit Unions charge less of an origination fee than the banks do.
This bill will put america in to a downward spiral of corruption and financial
desparation we will never recover from. The tax payers cannot support or pay for
this education and health care socialism. If you think the economy is bad now,
wait until it starts coming out of your paychecks.Education and
healthcare are not rights, they are privileges and the tax payers are not
required by the constitution to pay. Especially for illegal aliens from south of
the border who pay no taxes, who loot and pilfer americas poor. It's
unconstitutional taxation.Too many students and education think
getting an education is a right, well it's not a rights and they are forgetting
that when they graduate or stop going to school they join the ranks to pay this
tax. Which in turn will be a high cost affecting their ability to repay student
loans and this tax and the penalties this law will impose.Socialism
will rule and our country will become a foot note in history, a had been. In a
few decades we will not exist because of greed and socialism under Muslim rule.
I think its great
I trust the federal government to run the student loan program about as much as
I trust Obama to live up to his campaign promises. Which means I see this as a
It sounds good. Hope it works but if it's like s.s., medicare, etc. it will
eventually help break our country. You can't get something for nothing. I
would guess there is a pretty high percentage of people who will not pay back
their loans. Up goes taxes. It is all pretty scarey to me. I guess none of us
really know. Certainly congress doesn't.
controls all student loans, the government will decide who is worthy of being
loaned money--which means that the government will decide who is worthy to get
an education!It will also mean that a local lender, who can judge
individually who is or is not a good candidate for a loan based on the
individual's needs, student record, and the risk of the loan, will be replaced
by a functionary in Washington with no knowledge of the individual, his needs,
or his worthiness.If you don't like what happened to government-guaranteed
home loans, or the control those who administer your medicare, medicaid, or
insurance health benefits and decide what medical care you doctor can give you,
you won't like the way this is going to work out either.And for the person
who mentioned "greedy banks", did you not realize that the interest PAID to you
on your savings account comes from the interest banks charge on loans?
Finally they got rid of that scam. The way student loans were working was
ridiculous. We the tax payers paid for the student loans and took on
all the risk for the loans. If someone defaulted on these loans we still had to
pay for it, not the banks. The banks made these loans and collected interest on
them with zero risk. They didnt have to pay a dime, all they did was collect the
interest on them. Thats absurd and im happy its gone.
Wow, there could be a provision in the bill that brought Jesus back and the
haters would find a reason to complain about it.My goodness, this could be
a really good thing. The reality is, neither party is good nor evil and neither
one is or ever has been completely forthright with the American people. They are
all politicians serving whoever pays them the most (the Republicans, too,
participate wholeheartedly in this un-official system, in case you've been under
a rock your whole life).Can we please get over the dim-witted partisan
pigeon-holing and discuss the issue at hand? Not likely on the DN forums, I
suppose.And the comment about "substandard loans to substandard students"?
It would be great to have some clarification on exactly what the poster meant by
that. What would qualify said students as being substandard? Your attempt at
cleverness by drawing some parallel with the housing market fiasco is, well,
THEY DONT WANT TO HEAR U..........NOT IN UTAH
Student Loans? What does that have to do with health care? Oh wait a minute! It
doesn't! A hidden agenda...what a surprise! Not! At least, not for those who
read the fine print....
You may be pleasantly surprised, but that would be disappointing, wouldn't it?
Because you're not looking for the good, just the bad. You just like
Where is John Boehner and the Republican party health plan? Remember, Boehner
said last summer that the Republican's were putting the finishing touches on a
better plan. John, where is your plan? America is waiting!
One more lending program to allow congress and liberals to push social
engineering at the expense of the tax payer. The government promoted
substandard home loans for substandard borrowers and them blamed the bankers.
Who will they blame for providing substandard loans to substandard students.
Call it what it is folks. Student loan losses will end up being a
social welfare project and be the beginning of runaway educational inflation. I
am sure the liberals won't blame big education for this failure.
More funds available for people who want to go to school to improve their lives
is a bad thing? Cutting the greedy banks out of the picture is a bad thing? I
think we all would be disgusted if we really knew what was included in this bill
by both parties. Albeit good or bad, at least it is a step forward. I
personally will benefit from the changes taking effect immediately as will a lot
of people. The republicans missed their chance and stalled a little too long.
reconcilliation, which is the little trick they are ising to push this
catastrophe, is only to reconile budget items. Student lending has nothing to
do with health insurance, so it is against the rules of congress to include
student lending with health care. But leave it to the dems to ignore the rules
as long as they get what they want.
Wow! The Federal government snuck in a provision to take over something else
from private businesses??? What a shock!! You mean those politicians forgot to
mention this to the American people?? Social Security is broken, Medicare is
broken, the health care system will soon be broken and now they're going to
break someone's education.