Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
You are forgetting that they will need to hire people themselves now to administer these loans. Government salary + health care + pension.
What they paid contractors to do (Sallie Mae) they now have to do themselves and pay for it as well.
And if you increase the amount of Pell Grants and take away from the direct student loans..it's a loss right off the bat as Pell Grants are not loans.
So probably a loss in the long run.
No. It's already been pointed out in other threads that it's NOT going to be a loss. It's going to save quite a bit of money. 40 billion +. I'm quite sure you read those posts too.
They aren't "taking over", they already have it. Always have. Are you just acting ignorant or do you really not get it?
I think some people might be suffering from a bit of cognitive dissonance. They are trying so hard to pain the student loan bill as a "bad" thing just because Obama enacted it, so, jobs dependent on federal money are suddenly good "private sector" jobs that are threatened because the government wants more control over ... um... its own money?
I think some people might be suffering from a bit of cognitive dissonance. They are trying so hard to pain the student loan bill as a "bad" thing just because Obama enacted it, so, jobs dependent on federal money are suddenly good "private sector" jobs that are threatened because the government wants more control over ... um... its own money?
Yup.
It's frustrating when you can't tell if someone is being purposely misleading or is actually ignorant of the issue.
The government was funding it, not administering it. Now they will administer it as well as fund it.
Who will pay those salaries ? Don't forget the additional government benefits they did not have to pay before.
The government was funding it, not administering it. Now they will administer it as well as fund it.
Who will pay those salaries ? Don't forget the additional government benefits they did not have to pay before.
The government has tried twice before and failed miserably when they attempted to run student loans. FISL and DL, both mentioned in this link.
Also, what you are failing to take into account..the CBO has revised savings 3 times so far..each time downward. Now add to that the new spending in other areas and you have NOT saved anything..
"Initially, the Congressional Budget Office (CBO) projected savings of about $94 Billion over ten years. That has since been adjusted downward significantly to about $62 to $40 Billion. What should concern all Americans is that the “Health Care and Education Reconciliation Act of 2010” contains about $40 Billion in new entitlement spending. In other words, any potential savings to the taxpayer from consolidation would actually be lost to new additional spending. "
Also, what you are failing to take into account..the CBO has revised savings 3 times so far..each time downward. Now add to that the new spending in other areas and you have NOT saved anything..
"Initially, the Congressional Budget Office (CBO) projected savings of about $94 Billion over ten years. That has since been adjusted downward significantly to about $62 to $40 Billion. What should concern all Americans is that the “Health Care and Education Reconciliation Act of 2010” contains about $40 Billion in new entitlement spending. In other words, any potential savings to the taxpayer from consolidation would actually be lost to new additional spending. "
In its first iteration in the summer, the student aid bill was a standalone measure that delivered a substantially larger savings -- $87 billion -- for Pell and other Democratic education initiatives.
The figure dropped to $61 billion, chiefly because colleges have begun switching to direct government lending, anticipating that the law will change. Some private loan companies have retreated from the program as well, both because of harsher lending conditions and the looming changes. The volume of subsidized loans shrank from $61 billion in fiscal 2009 to $50 billion in fiscal 2010, according to a preliminary industry estimate. But direct government lending rose from $21 billion to $30 billion. Some of the savings promised in the bill are, in effect, already realized.
And what is the new entitlement spending? Using savings to beef up Pell Grants so that more than 500k economically disadvantaged students won't lose federal help to get a higher education?
Ambitions are diminished in the revised legislation, released last week.
The amount directed at Pell grants would drop from $40 billion to $36 billion, and a portion of the smaller amount would go toward closing an unexpected shortfall in the grant program, oversubscribed because of the recession. The annual Pell grant would rise to $5,975 by 2017 from the current $5,550, and for the first time, it would be linked to the consumer price index. In the original House bill, the Pell target was $6,900.
Long live the meritocracy. Down with the Republican love afair with American Aristocracy.
The entire health care bill and it's spending need to be taken into account.
If you save $1 in area A but spend $5 in area B, all coming from the same pot, then you didn't really save, did you ?
The student loan takeover is part of the health care bill. It's not a standalone bill by itself.
Yup.
It's frustrating when you can't tell if someone is being purposely misleading or is actually ignorant of the issue.
FFEL originated and administered 78% of all new student loans in the 2007-2008 school year. This public-private partnership will end with the Direct Loan program being the only choice left with no competition and government's typical lack of accountability.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
