I Am So Annoyed

I am so annoyed :-)
We find stories about the most annoying things and bring them to you!
Previous Post: An Oversexed Culture fueled by greed? the FCC Sucks at its job Next Post: Is this threat for real?

Obama: bringing student loans in-house

Saturday, July 11th, 2009   12:33 pm | Author: Jerry | Education, Politics/Government |
Tags: , , ,

President Obama is moving towards bringing all student loans in-house and it is about time.

 

The private banking involvement in federal student loans will be eliminated under this plan. I am sure that the lending industries lobbyists are working overtime to derail this plan.

 

Currently the Federal government subsidizes the loans made by the private banking sector. The banks in turn charge fees for the loans. The elimination of these subsidies will save the government about $87 billion dollars over 10 years which can be used to provide additional loans to underprivileged students.

 

The private banking industry argues that this will eliminate competition among lenders and that they provide better servicing of the loans.

 

I think the argument of competition is hogwash and it would not surprise me if these lenders are collaborating to fix the cost of the loans. The argument that they are better equipped to service the loans may be valid but there is no reason that the government can not do as good a job. It all comes back to management and accountability.

 

This is long overdue. Obama and many Democrats view is that there is no reason that the government should pay these lenders taxpayer money to run a risk free business. The private lenders originate the loans with taxpayer money, the repayments are guaranteed and then they sell the loans back to the Treasury. What a racket at our expense.

1 Star2 Stars3 Stars4 Stars5 Stars6 Stars (6 votes, average: 5.00 out of 6)
Loading ... Loading ...


CHECK other recent posts here
or RETRIEVE posts by title using the Post Title dropdown list on the top right of this page

ADD your comments for this post below
4 Comments
  1. Nikolai Jul 11th 2009  6:58 pm

    “The private banking industry argues that this will eliminate competition among lenders and that they provide better servicing of the loans.”

    1. Good! SCREW them. No more easy money for the banks; let them EARN their money the hard way and pay their own damn bonuses with NO help from the gov’t. I don’t get any help from the gov’t and neither does my employer; why should the wealthy banks get help? Good lord, let’s use some common sense! NO MORE SUBSIDIZING WEALTHY BANKS!!

    2. “They provide better servicing of the loans.” WTF? What’s THAT supposed to mean? The loans are in a data base which generates a monthly bill, and the balance is kept careful track of with redundant copies and backups. WHAT servicing? “You are late with this month’s student loan payment Timmy, pay up OR ELSE! Do they mean THAT servicing? What a fuc*ing JOKE!

  2. Home Loans Jul 12th 2009  3:41 am

    thank you, this one help me alot.

  3. ProfElwood Jul 12th 2009  11:04 pm

    Actually, the student loan program needs to be either completely reformed, or dropped altogether. The amount that can be borrowed is based on the school’s tuition, not expected income or likely ability to repay. Because of this, institutions quickly raised their tuitions, usually giving some of they money back in scholarships. But the real rates have been skyrocketing ever since and will soon create another “crisis” that will, of course, need another government “fix”.

  4. jess Jul 15th 2009  12:31 pm

    ProfElwood I agree, as a recent MBA multiple degree graduate who was duped into believing an education would get me somewhere in American, none of the Federal Loans that financed my useless education forwarned me of the economincal nightmare we’d face upon my graduation & the lack of available employment necessary to repay said government loans. The really sad part is, even those of us who are over educated, under employed citizens with overacheivement backgrounds actually value our credit, income, and want to repay in good time so we’re not still repaying the government in our retirement, when we won’t have Social Security benefits left to supplement our income and will likely be funding our own medical expenses when Medicare reform suck us dry. Yet the loan comanies, even Federal, are calling students in their grace period encouraging us to “defer the loan & get more education” that cannot afford, or defer & cry “economic hardship for a couple years until the economy improves!?!” Are you serious? Giving people more money they can’t afford to pay back is only eliminating the middle-man. Kids, do your research- private loan rates & consolidation rates are competitive & keep the govenment beaurocracy from controlling the world. Let us keep something of our own, or support the tyranny that is our current system. Not to mention the impact on unemployment when we shut down the banks- of course, after the 40% of americans who work in health insurance are unemployed…then it’s a great idea to go to school to prepare for the jobs that will never be available.

Follow us on Twitter at Soannoyed     Subscribe to our RSS feed

Post by Title:


copyright © 2009 by Mirage · credits · terms and posting rules



















If you are searching for a music and lyrics site this is the one Favorite Lyric or Favorite Lyrics