An End to Guaranteed Student Loans?
As if things are not bad enough in this economy, guaranteed student loans are on their way out.
(EMAILWIRE.COM, October 16, 2009 )
Fort Lauderdale FL, Say goodbye to guaranteed student loans. Under the legislation passed by the U.S. House of Representatives, students seeking a degree would no longer be able to walk into the bank or lending institution of their choice and sign a federally funded student loan.
This legislation has not yet become law; the Senate still has not voted on or passed the bill enacting this proposal. Under the current administration, however, this could happen. The goal is to decrease federal spending by more than $75 billion over the next ten years. Instead of obtaining guaranteed student loans through a lending institution, the student would sign a contract directly with the federal government to repay the loan.
Many banks have stopped offering guaranteed student loans as a result of agreements with the federal government. A few institutions, however, such as Wells Fargo, continue to have such programs available to college students. If this proposed legislation passes, only institutions participating in the Federal Direct Loan Program would be authorized to loan federal funds to students for college.
While this can be seen as an effort to save money, requiring students to obtain a federal loan only from lenders that participate in this program places considerable limitations upon the student’s right to choose his or her lending company. Furthermore, supporters of the plan have stipulated that the considerable projected savings be used in funding the increased amounts made available to college students who qualify for Pell Grants.
The U.S. Senate has not yet voted on the bill, and there is a possibility, albeit a slim one, that the bill will not be signed into law. It is highly, however likely that the bill will pass, at least in some form. Other changes or modifications to the legislation may be made before it actually becomes law.
To help stuents find aid www.Degree.com, the premier online internet portal for online Degree programs now offers a free copy of "The Big Book of Scholarships and Financial Aid Information" at
http://www.degree.com/free-downloads.htm/ The book sells for $19.95 at Amazon.
Guaranteed student loans will still be available, at least through the 2009-2010 school year. Whether loans will be available only through the Federal Direct Loan Program after this school year remains to be seen, but Degree.com will work to keep its readers posted concerning the outcome of the Senate’s vote, as well as any new changes proposed to the bill.
Summary: The U.S. House of Representatives has voted to end the Guaranteed Student Loan program available through the Federal Family Education Program. If passed by the Senate, federal loans would become available only through the Federal Direct Loan Program instead.
Sheila Danzig, executive director of Degree.com tells applicants to be sure to check out their full tuition payments and available aid before they enroll.
Fort Lauderdale FL, Say goodbye to guaranteed student loans. Under the legislation passed by the U.S. House of Representatives, students seeking a degree would no longer be able to walk into the bank or lending institution of their choice and sign a federally funded student loan.
This legislation has not yet become law; the Senate still has not voted on or passed the bill enacting this proposal. Under the current administration, however, this could happen. The goal is to decrease federal spending by more than $75 billion over the next ten years. Instead of obtaining guaranteed student loans through a lending institution, the student would sign a contract directly with the federal government to repay the loan.
Many banks have stopped offering guaranteed student loans as a result of agreements with the federal government. A few institutions, however, such as Wells Fargo, continue to have such programs available to college students. If this proposed legislation passes, only institutions participating in the Federal Direct Loan Program would be authorized to loan federal funds to students for college.
While this can be seen as an effort to save money, requiring students to obtain a federal loan only from lenders that participate in this program places considerable limitations upon the student’s right to choose his or her lending company. Furthermore, supporters of the plan have stipulated that the considerable projected savings be used in funding the increased amounts made available to college students who qualify for Pell Grants.
The U.S. Senate has not yet voted on the bill, and there is a possibility, albeit a slim one, that the bill will not be signed into law. It is highly, however likely that the bill will pass, at least in some form. Other changes or modifications to the legislation may be made before it actually becomes law.
To help stuents find aid www.Degree.com, the premier online internet portal for online Degree programs now offers a free copy of "The Big Book of Scholarships and Financial Aid Information" at
http://www.degree.com/free-downloads.htm/ The book sells for $19.95 at Amazon.
Guaranteed student loans will still be available, at least through the 2009-2010 school year. Whether loans will be available only through the Federal Direct Loan Program after this school year remains to be seen, but Degree.com will work to keep its readers posted concerning the outcome of the Senate’s vote, as well as any new changes proposed to the bill.
Summary: The U.S. House of Representatives has voted to end the Guaranteed Student Loan program available through the Federal Family Education Program. If passed by the Senate, federal loans would become available only through the Federal Direct Loan Program instead.
Sheila Danzig, executive director of Degree.com tells applicants to be sure to check out their full tuition payments and available aid before they enroll.
Contact Information:
Degree.com
Sheila Danzig
Tel: 954.445.0107
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
Degree.com
Sheila Danzig
Tel: 954.445.0107
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
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