Do you Trust the Federal Government to Manage All Student Loans? image meridian cedit
HR 3221 also known as Student Aid and Fiscal Responsibility Act of 2009 was passed by the House and referred to the Senate in September of 09. The bill, in essence, moves control of the student loan industry from a combination of public and private institutions to one of total government control. In a piece from CNS News,
A bill currently before the Senate would empower the Obama administration to nationalize the student lending industry, eliminating the federally subsidized private loans millions of university students rely on to finance their educations.
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The Bill, currently before Senate committee (Summary is available here) is now referred to as HR2669. In essence, this action allows the Federal Government to have total financial control over your student loans, regulating interest rates, and of course, collections should one default. In the instance of default one might prefer to have to face a Chicago politician or loan shark rather than the I.R.S.
One may think that the Government currently has enough on its plate owning the auto and banking industries, but in the never-ending quest for expansion, a move to take-over the student loan industry is of extreme interest due to the fact that larger numbers of individuals will be beholden to the government with no other recourse. If one cannot afford to attend college without a loan, the only option will be the “government loan”. There are always pros and cons to every bill, however, as usual; this little number is part and parcel of several other measures that have to do with the Department of Education - In other words, under the radar for the most part. This is one to watch – closely.
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