Student loans targeted in health care bill


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  • Oh, so sad
    March 26, 2010 2:51 p.m.

    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).

  • Same ol', Same ol'
    March 23, 2010 3:45 p.m.

    What does Obamacare have to do with Student Loans? Riders on bills should be outlawed.

  • Service loan or guarantee loan
    March 23, 2010 2:38 p.m.

    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 defaulted loans.

  • Alex
    March 23, 2010 2:09 p.m.

    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!

  • Malcolm
    March 23, 2010 1:38 p.m.

    If I were a communist, i'd be happy today. Nyet.

  • Anonymous
    March 23, 2010 1:34 p.m.

    Socialized insurance?? You believe corporations a socialistic? What happened to education in Utah? This is frightening.

  • Robert
    March 23, 2010 1:23 p.m.

    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 run it.

  • Monopoly?
    March 23, 2010 1:06 p.m.

    "...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.

  • Anonymous
    March 23, 2010 12:40 p.m.

    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.

  • Anonymous
    March 23, 2010 12:26 p.m.

    I think that should say "can not"

  • Wonder
    March 23, 2010 11:59 a.m.

    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.

  • How can so many people...
    March 23, 2010 11:03 a.m.

    be so massively uninformed? I sure hope this comment board doesn't reflect the best minds of Utah. If so, I am very afraid.

  • WOW!!!
    March 23, 2010 10:58 a.m.

    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!

  • Knowwhat
    March 23, 2010 10:41 a.m.

    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 the USSR".

  • Perkins Loan
    March 23, 2010 10:12 a.m.

    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.

  • Father of the
    March 23, 2010 9:47 a.m.

    (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!

  • JediToby
    March 23, 2010 9:39 a.m.

    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.

  • and more gov helps?
    March 23, 2010 9:39 a.m.

    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.

  • WBM5
    March 23, 2010 9:37 a.m.

    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 .....guess who!!!

  • Anonymous
    March 23, 2010 9:31 a.m.

    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.

  • ?
    March 23, 2010 9:29 a.m.

    @Cedar Constitutionalist
    Your 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.

  • What?
    March 23, 2010 9:21 a.m.

    @ annonymous @8:45
    A 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.

  • Broke 27 yr. old
    March 23, 2010 9:10 a.m.

    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?

  • It's not so easy...
    March 23, 2010 9:09 a.m.

    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.

  • cedar constitutionalist
    March 23, 2010 8:51 a.m.

    "When the people find they can vote themselves money, that will herald the end of the republic" Ben Franklin had that right.

  • Greedy Banks?
    March 23, 2010 8:50 a.m.

    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 it.

  • Anonymous
    March 23, 2010 8:45 a.m.

    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.

  • Paying to much in interest for
    March 23, 2010 8:41 a.m.

    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.

  • Hey Dixie Dan
    March 23, 2010 8:40 a.m.

    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".

  • Get A Clue
    March 23, 2010 8:23 a.m.


    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....

  • J$
    March 23, 2010 8:17 a.m.

    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.

  • wallofvoodoo
    March 23, 2010 8:05 a.m.

    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 does this.

  • re: Just Me
    March 23, 2010 7:01 a.m.

    "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.

  • Wow...
    March 23, 2010 6:45 a.m.

    Before you make comments about how Federal student loans work, learn something about how federal student loans work.

  • like the present system
    March 23, 2010 4:51 a.m.

    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.

  • Troubled America
    March 23, 2010 4:51 a.m.

    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.

  • robust robert
    March 23, 2010 12:32 a.m.

    I think its great

  • Rich
    March 23, 2010 12:02 a.m.

    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 disaster.

  • just me
    March 22, 2010 11:43 p.m.

    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.

  • When the government
    March 22, 2010 11:36 p.m.

    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
    March 22, 2010 9:43 p.m.

    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.

  • Just Me
    March 22, 2010 9:16 p.m.

    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, substandard!

  • Anonymous
    March 22, 2010 8:52 p.m.


  • Anonymous
    March 22, 2010 8:31 p.m.

    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....

  • re:
    March 22, 2010 8:27 p.m.

    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 belly-aching.

  • Dixie Dan
    March 22, 2010 8:26 p.m.

    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!

  • Student Loan Program?
    March 22, 2010 8:21 p.m.

    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.

  • Anonymous
    March 22, 2010 8:18 p.m.

    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. Sorry!

  • ABBO 2012
    March 22, 2010 7:58 p.m.

    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.

  • What a Surprise
    March 22, 2010 7:55 p.m.

    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.