College Loan Blog

2007-01-23T02:54:00.000-08:00

new rumours from the election

for those of you looking forward to the 2008 elections you may be happy to know that because of this 'open house' policy it seems to be running there are many wild rumors appearing about what the parties involved will be considering.

now those of you in higher education or considering it may be in luck as a major change seems to be the rule on student loans and bad credit, although this is purely speculation at this time there is alot of confidence behind it.

however it isnt sure as of yet which party will be introducing it, many internet marks of the election say it may be hillary clinton looking to sway the younger voter. or it may be becuase half of the nation despises her. but either way it could be a very interesting election.

i will let you know as soon as i here anything different or of any use.

peace out

2007-01-09T02:56:00.000-08:00

College Loans - Do We Really Need Them

Thinking about it, there is such a fuss about how the younger generation is the future, how there meant to be able to do everything the generation before them didn't. And most of all how they can be more sucessful simply because they have 'more availbale to them'.

But this isn't the facts really is it. Because were still in the same situation we were 20 years ago, because more and more people arn't using the education thats available to them for fear of student debt. If your already in debt when you start a new job after university, college or wherever else, imagine the chances of getting a loan if you have bad credit.

The point is people shouldn't have to pay years worth of debt back to a government that should be supplying education free anyway, just because they wanted to better themselves and create a better life.

What if they have a family to support, and the governments taking away part of their salary for what, so they can hand out cash to people who's only ambition in life is to sit around drink and be a scourge of society. If anything they should be charged.

Stop the rise of payment for higher education.

2006-06-19T15:56:00.000-07:00

Congress hikes rates, limits on student, parent college loans

By capturing difference between interest paid by students, lenders, government could generate $14B.

Jonathan D. Glater / New York Times

With the narrow passage of the budget bill by Congress this week, students and their parents will be able to borrow more money to pay for higher education, but will face higher interest rates on these federal loans beginning in July.

Some critics have argued that the higher interest rates are, in effect, a cut in student aid.

Yet the bill could potentially generate nearly $14 billion in revenue for the government over five years by capturing what has at times been a windfall to lenders: the difference between the interest rates paid by students and rates paid by lenders.

Before, lenders could keep profits generated when rates they had to pay were lower than those paid by borrowers; now, that spread will have to be paid to the government.

The impact

Loans taken out by parents: Known as PLUS loans, the rate on them had been scheduled to rise to 7.9 percent from the current 6.1 percent on July 1; it will now increase to 8.5 percent as of that date. Nearly 800,000 parents take out PLUS loans each year, according to the Education Department.

Loans taken out by students: Under current law, the interest rate on federal Stafford loans will rise to 6.8 percent from 5.3 percent. Nearly 10 million students take out Stafford loans each year.

Loan amount: The law raises the maximum amount students can borrow through the Stafford program, putting more costly educational opportunities within reach, but also deepening the potential hole students may find themselves in after graduation. It also makes some types of loans available to graduate and professional students.

The partisan pitches

Republicans: "With this bill, we were able to reduce spending through changes in the way lenders operate, but at the same time we shielded the direct impact to students and actually increased student opportunities," Sen. Michael B. Enzi, R-Wyo., chairman of the Committee on Health, Education, Labor and Pensions, said in a statement after the bill passed the Senate.

Democrats: Rep. George Miller, D-Calif., called the bill too harsh on families.

Student advocates cry foul

The changes have led some advocacy groups, which had hoped to have the windfall money returned to students, to describe the new system as a hidden tax on borrowers.

"This bill turns to students and families as the predominant source of revenue, rather than trying to identify inefficiencies in the loan programs," said Luke Swarthout, higher education associate for the State Public Interest Research Groups, a nonprofit consumer organization that opposed the law. "This bill asks students and parents to pay for tax cuts."

Government windfall

Democrats and Republicans have sought to characterize the bill as cutting expenses, although it raises revenue, said Michael Dannenberg of the New America Foundation, a public policy institute in Washington. "Republicans want to say that they're cutting the program because they want to say that they're cutting down the size of government," Dannenberg said. Democrats want to say that Republicans are cutting the program "because it plays into the image that Republicans are anti-education."

MONEY MONEY MONEY

2005-10-09T14:11:00.000-07:00

I wish I knew how to get credit cards! I hate to pay high interest though.