House Approves Overhaul of Student Aid Policies

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The only competition is by the greedy, attempting to see which one can hike there rates the hightest, the fastest.
The government is already involved in student loans because they guarantee repayment. And the argument about loss jobs by the government re-taking this process, well, job losses happen everytime banks consolidate anyway.

Shag of CA 2:31PM September 22, 2009

As usual the "socialism detectors" among us see nothing but unprovable conspiracies and hidden agendas when a little actual knowledge about this industry might explain (well no they'll just move on to some other scream festival) things.
1. The industry is already socialized. The money is "lent" by the financial institution, but guaranteed by the federal government. The loan goes into default and in a matter of hours it is purchased by the government.
2. As for you getting a loan or being denied a loan for any political or religious affiliation please see The Higher Education Act of 1965 and its subsequent amendments, the Truth in Lending Act, the anti-discrimination remedies available in the Civil Rights Act of 1965 and its amendments, and any of your state lending and usury law regarding such discrimination. There is a lot to choose from and your state Dept. of Banking (or equivalent) can help you along with the Dept. of Education, the Treasury Dept. and the Commerce Department Consumer Protection Office. Nice that government looks after this isn't it?
3. You'll notice that the banks are complaining a lot, but Sallie Mae isn't making such terrible noises about it. Well that's because the reform leaves collection of student loans in the hands of private industry and that is where the real money is. Sallie Mae gets 1/3 of all the money students send in on loans in default. So guess where their incentives are? You bet, put 'em in default and make a fortune collecting the money. Banks are upset because their easy money making risk-free loans is gone.

Gari of student loans of WI 5:18PM September 21, 2009

I personally couldn't be happier to hear that reform measures in addition to those involving health care are in the mill. College aid is too important to leave to private lenders, their profit-driven motives adding too much to amounts borrowed by students.
In 1958, I finished my four-year enlistment in the Air Force and was in need of financial assistance to start college. At the time, a very generous, renewable loan was available to everyone through the federal government's National Defense Education Act. Repayment was interest-free until after graduation, with deferral possibilities for post-graduate work. It took me almost 10 years to repay, and the amount repaid in total was just a few dollars more than the principal of the loan.
Those who fear yet "another" move toward socialism in this country simply do not know their history or what they're talking about. They need better sources of information than they presently have obviously.

Ron W. Smith of UT 5:00PM September 21, 2009

I agree with BHB of NY. It is all about profit and greed by the financial institutions.
Let us put our money where our mouth is in this country. We keep hearing the education rhetoric and how we need more educated citizens. Well, lets make it happen by making loans profitable for the students, not the banks.
Also the FAFSA is the most ridiculous form I have ever filled out. It is outdated and does not even come close to being an accurate measure of what a family can afford for college. But then our government knows that already. Will the new form change that or will it be just another token gesture? I am not holding my breath.

DEC of TN 3:50PM September 21, 2009

Why just Katrina and Rita? Is this a racial issue?
What about Ike? What about helping the Texas educational institutions - UTMB?

Patty of TX 11:26AM September 21, 2009

Can you say FAFSA? The federal government already decides who recieves a Stafford or Perkins student loan. If the federal government is issuing out the loans it is not necessary for it to be overseen by private enterprise.

D. Mc of TX 5:00AM September 21, 2009

It's about time we put this cash cow for the banks out to pasture. Too EZ money from both the students and the gov't. which was taken advantage of by the banks. The only problem is that the rate should be based on the cost of the administration of the loans plus one percent for the gov't. coffers.
The whole bank thing (and insurance company thing) is all tied into industry money flowing into the two Houses, and has to stop. If profit was not the primary motivator, instead of the student (or patient), the gov't. would not have to take control.

BHB of NY 9:31PM September 20, 2009

And so it begins......

Eddie v of NJ 11:54AM September 20, 2009

Stacy, Definition one will suffice. When the government is the one that picks and chooses who gets a loan, will it depend upon their political party? The color of their skin? If they said something good or bad?? Government ownership in deciding who gets the loan and who does not get loans, is by definition Socialism/Communism.
Quite obviously you do not under the term, nor the basic concept of what it means when the government controls who gets loans and who does not get loans.
You show the ignorance of the masses when you say things that are false, you could use some college, you could also use an open mind, but alas, one can only hope.
Stacy, you are so emotionally involved with the democrats that you are blinded by your love for Obama. You are an Obama right or wrong democrat, you insult people without even understanding yourself.
When the government is the one that decides who gets a loan and who does not, this by definition is socialism/communism. And what will be next??? House loans? Car Loans??
This is how it all begins. This is clearly written in the history books.

Gordon of MI 9:45PM September 19, 2009

Learn what socialism is before you accuse the government of becoming socialist. For your edification and everyone else's here is the definition from Merriam Webster:
1 : any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods
2 a : a system of society or group living in which there is no private property b : a system or condition of society in which the means of production are owned and controlled by the state
3 : a stage of society in Marxist theory transitional between capitalism and communism and distinguished by unequal distribution of goods and pay according to work done
Source:http://www.merriam-webster.com/dictionary/socialism
Quite obviously you do not understand the term. Maybe you were t inking "Orwellian," frankly, I don't know. When you just repeat the mantra of the masses, you show your ignorance of the subject and are part of the problem in this country. You do not know what you are talking about. Yeah, you could use some college. You could also use an open mind, but one can only hope.

Stacy the Librarian of FL 6:02AM September 19, 2009