Student Loan - Loans and Debt Consolidation

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Photo of March 4 demonstration at SFSU by Steve Rhodes

One of President Obama s most ambitious plans for both education and the budget was the transition from a system of government subsidized student loans using bankers as middle men to direct student lending. But as The Hill notes this morning, the Senate can only move one reconciliation bill until they pass a new budget resolution. If they try to fix health care and don t pass student loan reform at the same time, it will be another year until they can take it up.

Colleges across the country that are already slashing programs and hiking tuition in the wake of state budget crises. They desperately need the $4.7 billion that student loan reform will bring to them in 2010 alone.

In September, the House passed H.R. 3221, the Student Aid and Financial Responsibility Act SAFRA. It put an end to private lending, which the Congressional Budget Office has said will save $87 billion over 10 years.

Colleges across the country can t wait another year for relief. On March 4, there were student demonstrations in 30 states 100 in California alone protesting tuition hikes and program cuts.

Enter the Lobbyists

JP Morgans Jamie Dimon made $17 million in 2009

But the government s Direct Lending program is already up and running at the colleges that are responsible for 96% of all the student loans in the country, and originated 26% of all federal student loans last year. The Department of Education...[more]