US Senator Dick Durbin Speaks at SIUE About Student Loans

EDWARDSVILLE, IL -- Students will see increased Pell Grants and friendlier loan repayment terms as a result of an historic overhaul of the nations 45-year-old student loan program signed into law last week, U.S. Senator Dick Durbin (D-IL) told students at Southern Illinois University Edwardsville today.

The provisions included in the Health Care and Education Reconciliation bill force commercial banks out of the business of administering federally guaranteed student loans, ending a system dating back to 1965, which provided commercial banks like Sallie Mae guaranteed federal subsidies to lend money to students, with the government assuming nearly all the risk. As the largest originator of federally insured student loans, Sallie Mae flourished through the risk-free business of federal student loans, reporting a profit of $309 million in the last quarter of 2009 alone

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