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A blog about Schools & Education.
Real Name: The Grade Jorge Barrientos Address: 1707 Eye Street Bakersfield, CA 93301 Member Since: January 28, 2008 Last Signed In: November 23, 2009 Profile Views: 838 Blog Views: 27456 Parents ask district for $19,000 after monkey bar fall School council: Overcrowding leading to restroom problems Parent upset after teacher shows "R" rated movie in class Shafter school gets physical fitness award President: CSUB cuts expected mid-December CSUB budget situation Wonderrotunda! New charter school on horizon New study: Latinos and the achievement gap Hispanic Youth Institute January 08 February 08 March 08 April 08 May 08 June 08 July 08 August 08 September 08 October 08 November 08 December 08 January 09 February 09 March 09 April 09 May 09 June 09 July 09 August 09 September 09 October 09 November 09 
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Vote on college loans
A House vote on a bill that would cut out private lenders out of the federal government college loan business. The government could save $87 billion over 10 years by not paying the lenders (think Sallie May) to handle the loans. If the bill passes into law, the upshot? ".... anticipated savings to increase grants for low-income students and boost funding for minority students." LA Times article: Student loans might soon get overhauled. Here's how. Wall Street Journal article: Bill Upends System for College Loans 4 comments from 3 users
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posted by
jfrancais
on Sep 18, 2009 at 04:50 PM
I would like to see private lenders cut out of the federal loan program and then compete right alongside the government program. Before this meltdown, the banks were in cahoots with school administrations and steering unsuspecting college students into loans for kickbacks. The loans all seemed to be the same except you were subject to certain fees and gimmicks depending on which bank you picked. There are no real choices under the current plan. I don't see a lot fo savings like they are claiming but I don't see the point of giving money to private institutions with no benefit to the government or consumer. posted by
Shwaine
on Sep 19, 2009 at 12:05 AM
I find it amusing that they are proposing to go back to variable loans. I never understood how the fixed rate change was supposed to help the students. I could see how it helped the banks for sure, but not how it helped the students since the old variable rate loans had a rate cap as well. posted by
learnem
on Sep 19, 2009 at 05:19 AM
yeah, because fanny mae and freddy mac have done such a good job in the home loan sector.. a great example of the government run entity wasting taxpayer money and being less efficient than the private sector model posted by
jfrancais
on Sep 19, 2009 at 02:34 PM
The private sector was not much better. The money just ended up in private hands (yet guaranteed by the government). I also thought it was wrong how lenders gave kickbacks and perks to Colleges and employees to coax students into their products. Students were consulting with these people in good faith only for there to be a conflict of interest. Students were choosing loans on bad faith advice and in turn, being subject to unsuspected fees. The banks got in legal trouble over this. http://www.msnbc.msn.com/id... http://abcnews.go.com/Blott... http://www.cbsnews.com/stor... http://news.findlaw.com/and...
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