« I Called To Find Out About Getting A Student Loan... | Main | What's Behind Sharp 23.7% Increase In Pell Grants In 2008-09? »

September 21, 2009


Feed You can follow this conversation by subscribing to the comment feed for this post.


Perhaps "no impact" is a slight exaggeration - nothing is free of impact entirely. However, I definitely think that the howls of outrage at a "government takeover of the student loan industry" are disingenuous at best.

Editorials and even reporting pieces in places like the Wall Street Journal have claimed that the federal government will become the "sole source of student loans." This is, frankly, a lie. The federal government will become the sole source of federally-guaranteed loans, while private enterprise will still be able to make non-federally-guaranteed loans.

There's a parallel with people fearing that government will take over medicare: Stafford loans are ALREADY a government program, and eliminating the extra private-sector step in the Stafford process just simply isn't the earth-shattering takeover the banks say it is.

The comments to this entry are closed.


SLA Private Student Loan Ratings

  • SLA :: Ratings
    Trusted source for independent, objective and timely information about private student loans

Paying For College Blog

  • Paying for College Blog
    Site for parents and students looking for independent and objective information about financing a college education

Want to receive daily SLA Blog updates via e-mail?

Enter your email address:

Delivered by FeedBurner

SLA Search Engine

Terms and Conditions