Student Loan - Loans and Debt Consolidation

STUDENT LENDING AND THE MYTH OF 35000 LOST JOBS FIREDOGLAKE BLOG

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In fact, there are only 30,000 people employed in the entire industry, which includes three different sectors: origination, guarantee agencies and loan servicing. The number comes from a survey conducted by the National Council of Higher Education Loan Programs an association for student loan companies. The only sector that would be replaced entirely by direct lending is origination, the least labor-intensive of the three. According to Ben Miller at the Quick and the Ed:

Loan origination in its most basic form is the process of obtaining the money for student loans and transferring those funds to borrowers or to their institutions. This is a very inexpensive activity. According to information from the U.S. Department of Education, its complete cost of originating a Direct Loan last year was around $5.50. That figure includes around $1.50 in administrative and other expenses.

When you compare that with the $75 per loan that the student lenders are currently being paid for loan origination under ECASLA, you get an idea where the savings in SAFRA are going to come from.

And most of the jobs in the guarantee agencies roughly 4000-5000 are being saved courtesy of money stipulated in the SAFRA bill itself.

None of these estimates factor in the jobs that would be saved or created by money going to state education programs with the passage of SAFRA.

Find out more about the Students, Not Banks campaign and sign the petition.Go to source web page for full content: Student Lending and the Myth of 35000 Lost Jobs Firedoglake blog