This is the latest news on a house bill that would expand government loans and kill private loan for people in school:
The Democrat-controlled House is expected to pass a bill Thursday that would terminate the Federal Family Education Loan Program, in which private lenders provide loans backed by the government.
In its place, the direct lending program, in which students get their loans straight from the government, would become the sole source of government funding for students needing help with college tuition.
President Barack Obama proposed eliminating the program in his 2010 budget blueprint. TheCongressional Budget Office estimates doing so would save taxpayers $87 billion over 10 years.
The House bill calls for using $40 billion of that savings to increase Pell Grant
awards and invest in early childhood education, community colleges, historically black colleges and universities and other education programs. Private lenders would be hired to administer the loans.
This “sounds” like an improvement, but with anything else in life, dong your own research to find the pros and cons would keep millions of students who borrow above the fray. Reforms always have bumps in the road, but it is no secret that if you borrow from the government instead of private loans it is cheaper. Keep your eyes out…
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