Comments on: Student Loan Reform: To Help Students Or To Enrich Government? http://www.myloansconsolidated.com/2010/01/21/student-loan-reform-to-help-students-or-to-enrich-government/ Student Loans | Debt Consolidation | Economic Forecast | Personal Finance Sat, 04 Sep 2010 18:31:43 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Credit Girl http://www.myloansconsolidated.com/2010/01/21/student-loan-reform-to-help-students-or-to-enrich-government/comment-page-1/#comment-4491 Credit Girl Wed, 27 Jan 2010 16:57:30 +0000 http://www.myloansconsolidated.com/?p=2094#comment-4491 It's really unfortunate that there is such a dramatic increase for student's tuition. As if the students weren't already dealt with huge loans after they graduate, now they will also be met with fewer job opportunities coming out of college because of the recession. It’s really unfortunate that there is such a dramatic increase for student’s tuition. As if the students weren’t already dealt with huge loans after they graduate, now they will also be met with fewer job opportunities coming out of college because of the recession.

]]> By: Liz http://www.myloansconsolidated.com/2010/01/21/student-loan-reform-to-help-students-or-to-enrich-government/comment-page-1/#comment-4480 Liz Sun, 24 Jan 2010 17:36:27 +0000 http://www.myloansconsolidated.com/?p=2094#comment-4480 It is not possible to "nationalize" an industry which already subsists almost solely on government handouts. FFEL is a program which provides government guarantees for private student loans. These guarantees count against the deficit, provide a subsidy for banks, and harm students, since unlike any other consumer debt, the loans cannot be discharged in bankruptcy. There is nothing private about the industry now. Reform would simply force the banks to contract to provide services to the government, cutting their profits. It is not possible to “nationalize” an industry which already subsists almost solely on government handouts.

FFEL is a program which provides government guarantees for private student loans. These guarantees count against the deficit, provide a subsidy for banks, and harm students, since unlike any other consumer debt, the loans cannot be discharged in bankruptcy. There is nothing private about the industry now. Reform would simply force the banks to contract to provide services to the government, cutting their profits.

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