I don't care how anyone spins this this is absolutely a government take over, I am a Physician, and now every one of my loans is 3 times the rate they were when I signed for them. Hmmm, think about Obama signs into LAW that he and the government get the most secure loans, with an incredibly high rate, this is a MONOPOLY and is unconstitutional for me and everyone else to not have the right to choose better loan options. True the gvmt underwrites and secures a loan prior to this but, the rate was a third of what it is now and all of that extra money I am paying goes to the black hole of gvmt spending. Personally I can not believe that they can ethically and legally do this!!
billof AZ2:47AM April 07, 2012
This is not good, I wish the government would stay away from my loans and let my excessive my right to choose the loans I would like. Say no the Obama and taking away my rights. 6.8% that rate is so ridiculously high, this is horrible!!!
billof AZ2:40AM April 07, 2012
I agree with Megan. I was really excited about the new laws surrounding financial aid. However, I recently found out that I do NOT qualify for financial aid due to the new qualifications. I now have to pay cash for my classes and my graduation date has been pushed back 2 years!!! I can only afford to pay for 2 classes per semester. Yes, there will be more money for current students but only because the other students who use to recieve financial aid are no longer eligible. Now enrollment will go down nation wide, and in the long run there will be fewer college graduates. This is the opposite direction of where this country needs to be headed.
Gwynof MO7:02PM December 16, 2011
I would like to get information about private student loans and if there will be any help from the government to students as to combining the loans and getting one loan payment. Can anyon help me with this question?
Joan of OH8:31PM October 27, 2011
As a current student and single mother, I was very pleased when this legislation was first introduced. I assumed that it would make the lending process more efficient and possibly increase my aid. However, the reality is that I might not graduate due to the new lending regulations. In past years, I have always qualified to borrow enough money to sustain my cost of living while attending school. This year, I only qualified for $800 in loans. I have to pay $200 per week in daycare bills just to attend school. Obviously, this has now become impossible to maintain. According to the Financial Aid office at my school, the government take over somehow lowered the amount of money I could borrow. They said that my cost of attendance was lower. I don't understand this because my cost of attending has actually increased. I was a huge supporter of the health care reform and even sported a BFD shirt that I proudly purchased on the DNC website. I now regret my decision to support this legislation, as it has forced me to quit school until I can find another means to support my son and myself financially while I am in school.
Megan of SC11:22AM February 21, 2011
Until my daughter asked me to sign a parent plus loan for her, I had never heard of 'capitalized interest'. Heinous! I don't understand how it ever became legal for education lenders to charge students while they're in school.
When I had to borrow for school in the 80's, I didn't have to pay a penny until I had been out of school for six months AND interest DID NOT START ACCRUING until the loan came due.
I am planning on filing a complaint with the Attorney General in regard to all of the unethical practices I feel the ED and the loan servicer are engaging in when it comes to the PP loan; I was never notified of my loan servicer, just received a junk-mail-looking envelope with 'great lakes' on the return label. turned out it was a letter telling me that my repayment would start next month, even though I had been told my the ED that my request for deferrment was approved and that the loan was in deferred status. The servicer customer service rep claimed it wasn't relevant unless I requested it throught the servicer. is that in the ED disclaimer and notice? I don't recall seeing it.
I recommend anyone who has had issues with the Parent Plus loans that they find unethical file a claim with their attorney general. If the AG's are inundated with complaints regarding these practices they will have to address them
Tracyof NY12:05PM December 09, 2010
As a recent graduate with an abundance of debt, myself, I can't complain enough about the ridiculousness of the current student loan system. All of my loans (with the exception of one Perkins) are Stafford...thus the money is from Uncle Sam. For about half of my loans the lender is the Dept. of ED. For the other half the lender is USBANK. From those two, I have three servicers..the people who send the bills, call you, email you, ignore you when YOU need something. Recently I heard whispers about this IBR program....I pay back what I can afford, not to exceed what a standard repayment would require...and in 25 years all remaining debt is forgiven. WONDERFUL. However, for my loans whose lender is the DOE, the paperwork was easy, quick, and there is actually a person on the other end of the line. For 'the other lender' this isn't the case in the slightest. What takes DOE to process is 10-14 days 'the other' takes 60-90 days!! They've been rude, inconsistent, and have already 'lost' my paperwork once, which I had to resubmit pushing the processing time that much further.
My point being, education in this country should be easy to get, easy to pay back, and should be handled by the government... the success of our students leads to the success of our country..economically, technologically, medically, you name it- it's on us. All this talk about students being our future, about education always needing funding and yet year after year budgets are cut and education budgets are the first to be axed.
Its about time that the government just says, we already guarantee the loans, why don't we just lend the money straight to the students versus to the banks. The middleman may have helped to build this country, but then he got rich and forgot about the little people. I for one am excited for the changes and have no intention of going down with a few corporate-corpses.
Then again, if you don't want money from Uncle Sam, by all means borrow from a private bank..you still can...just don't expect the VIP treatment they are trying to sell.
saraof ID1:21PM July 06, 2010
I need help asap. My daughter has one more semester of school left and I got tunrned down for the 1st time under the New Federal Plus Loan plan. For the past 3 years I was able to get the Plus Loans and used Citibank. Now this year, this the change, I was denied. My child still needs $11,000 in funding to graduate. I had filed bankrupcty some years back becasue I lost my job and my spouce. I am back on track now and have a decent job. Any ideas? There is a Federal law that states that as long as a loan originates through a Federal agency they cannot discriminate against bankruptcy.
The bankruptcy code specifically provides that no governmental unit that operates a student grant or loan program and any person engaged in business that includes the making of loans guaranteed or insured under a student loan program may not deny a grant, loan, loan guarantee, or loan insurance to a person who has filed for bankruptcy or is involved currently in a bankruptcy case [11 USC Section 525(c)].
Thus, as long as you are applying for student aid through a federal government insured program and you otherwise qualify for aid, you can not be denied a grant or loan just because you have filed or are currently involved in a bankruptcy case.
So do I know tell my daughter she can't graduate?
Julie casbarof MI2:07PM June 08, 2010
Why are we not given the choice between this and a private alternative loan if we wish it? I understand that banks make it more difficult based on credit-worthiness and the government has needed to help out more, but I am 24 and have been getting my student loans between 2%—4% interest rates. So if I want to continue going to school I'm forced into a corner with a 7.9% fixed rate?
I really don't care about where the money comes from, but I should have the right to choose because my debt is already going to be big enough. I know plenty of people that have trouble getting money for school because of their or (more importantly) their parent's credit score, and it's great the government is finally stepping in. But if I've worked hard for a reliable credit score why am I being denied the option of saving thousands of dollars? That really makes no sense to me.
Please give me my right to choose whether I want to use this government loan or a private alternative one. There's no reason why alternative loans should be forced out of the equation for those of us that qualify. I don't enjoy the concept of being backed into a corner by my own country; we're better than that.
Studentof CA4:21PM June 01, 2010
Republicans make me sick every time they speak. The notion that its a government takeover is ludicrous. They are not taking away student's money. They are giving students MORE than before. I am a student right now and have been for several years. I saw a drastic improvement in the past month and have been awarded more money than before. For the first time I have been able to go to Summer classes without paying for books and supplies out of pocket. It's about time considering how tough things have been for students. Republicans LOVE corporations because they own many of them. It's time to bring banks to their knees because they are using the credit scheme against the people. And anyone who pays attention can see that the majority of American citizens have either no credit or bad credit. I think credit is a bad idea and we should do away with it. It helps maintain division between the people.
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bill of AZ 2:47AM April 07, 2012
bill of AZ 2:40AM April 07, 2012
Gwyn of MO 7:02PM December 16, 2011
Joan of OH 8:31PM October 27, 2011
Megan of SC 11:22AM February 21, 2011
Tracy of NY 12:05PM December 09, 2010
sara of ID 1:21PM July 06, 2010
Julie casbar of MI 2:07PM June 08, 2010
Student of CA 4:21PM June 01, 2010
JJM of KY 3:52PM May 06, 2010