The Future of Federal Student Loans

On Tuesday, March 31, the New America Foundation's Education Policy Program hosted "The Future of Federal Student Loans" This event featured representatives from the Obama administration, the student loan community, and New America's Education Policy Program to discuss the pros and cons of the President's proposal to stop guaranteeing federal student loans and to instead make the loans directly.

On Feb. 26, the Obama Administration laid out a bold plan to expand financial aid, paid for in part by ending the Federal Family Education Loan (FFEL) program and instead contracting with companies to service loans. This proposal is controversial in the lending community, the higher education community, and on Capitol Hill.

Category:

News & Politics

Tags:

• Education
• Student
• Loans
• College
• Federal
• Private
• Public
• Sector
• Reform
• Obama
• FFEL

[codewarrior05]

22:10 min it, I had to laugh. "They hoped it would reduce tuition"

How about get the federal government out of the student loan business?

[yoops]

I borrowed in total $30k for only 1 years worth of college. I left college after I learned of the evils of student loans and I'm completely pissed. Why the fuck did nobody tell me this during high school or even my financial aid advisers. Bunch of crooks screwing the American youth over. If you are poor and you wish to get higher education, you are screwed buddy.

[heartlessvietboy]

Schools and School Districts don't even have record of your Child's Inter-Curriculum History. There isn't even Field Trip Records which should be Kept by the School District.

[mathdude28]

@PurrGrrl damn strait.

[GreatSatan1]

Get rid of the middleman right?

We don't need no stinkin' middleman. Costs the American people too much unnecessary money.

Get rid of the middlemen. Corporations are the enemy of the people. Corporations that own farms, orchards, trucks, railroads, fertilizer companies, storage warehouses, processing facilities, pesticide companies, advertising companies, packaging companies, corporate retailers. These are all profit making enterprises that add to the cost of our food. We need to nationalize.

[beebop46n2]

Anyone that cares about education in this country needs to look at a guy by the name Peter Schiff. Do a search on youtube. Currently our primary educational institutions reward the administrative staff and teacher's unions and not the students. Our current system is failing our youth. Govt needs to get out of guaranteeing loans. Then the banks have to actually look at the ability of the individual to pay back the loan. It's common sense. Don't repeat the mortgage crisis.

[codewarrior05]

How about getting the federal government out of the student loan business? Before student loans were the norm, tuition was affordable and students could work a part time job to pay the costs.

[Macwildstar]

I agree, Eliminate the loans, make it pell grants to those who are most qualified. Some competition is always good. Not everyone needs to go to college. I know 2 professional students who have 4 degrees each who will NEVER be hired by any good company worth working for because they have absolutly no common sense. These 2 have over 250k each in student loan debts, that they will never be able to pay for.

[Macwildstar]

no. The IBR program is just another cost shifting program. If you don't work in a field that qualifies for total forgivness at the end of 25 years, you then pay income tax on the balance, for some of us that amount due will be greater than what we started with. So instead of paying thru Dept of Ed, we pay thru the IRS.

No.. this is not a solution, it is just another avoidance of the real problem: That the student loan industry since the late 1970's became predatory and exploits students.

[pd18750]

Let's just hope that the new income-based repayment (IBR) plan is the best thing ever to happen to managing student loan debt. If it's not, then I won't hesitate to renounce my U.S. citizenship and live and work in another country, I'm sure a foreign country would LOVE the education and expertise of a U.S.-educated Ph.D. :) Student loan debt is the new terrorism

[Moveontonumber2]

I was the son of a 100% disabled female Vietnam veteran when I graduated high school. I was "entitled" to chapter 35 benefits. Instead of the government practicing predatory giving, they practiced predatory lending and I racked up 30k for school. Its now at 53k and I've paid 13.5k . They tell me the benefits I should have gone to school with are not retroactive. If I cant hold them accountable, how can they hold me accountable? Its a modern slave trap.