PSU news by
Penn State's student blog

Topics

About

Student Loans to Change?

senate-logosvgIt’s possible. With the Senate vote on April 29th, bank-based guaranteed loans could go the way of the dodo. According to the Chronicle:

The plan, which Congressional appropriators will use as a guide when they draw up spending bills for the coming fiscal year, instructs the committees that oversee education to shave $1-billion from programs under their jurisdiction through a process known as budget reconciliation. Lawmakers are likely to seek those savings through major changes in the bank-based guaranteed-loan system, perhaps even eliminating it altogether, as President Obama has proposed.

The result of this is that all student loans would originate directly from the Federal Government. Banks would have to compete over the right to collect the loans when it comes time to pay them back. I believe this gives the goverment more power to decide the terms of the loan, the interest rate, and so on.

Student groups hope the savings from this new program will be placed in Pell Grants and other grant programs, which students don’t have to pay back. This is a good first step for the Obama education plan. One of his campaign positions was that it should be more affordable to attend college. This is how he intends to go about acheiving that. Additionally, I believe his next step, as laid out in his platform, is to reward those students that participate in community service activities with compensation that helps pay for their education.

[Source][Source]

Your ad blocker is on.

Please choose an option below.

Sign up for our e-mail newsletter:
OR
Support quality journalism:
Purchase a Subscription!

About the Author

Eli Glazier

Eli is a junior majoring in International Politics. He enjoys paninis and books.

Comments

Other posts by Eli

Senior Writes Final Column

Senior columns, with all their melodrama and platitudes, usually leave me eye-rolling and shaking my head with a vigor usually reserved for study abroad blog posts. But, as I graduate a week from today, I figured I should give it a go myself. Rather than discuss the origins of Onward State like Evan,  I’d just like to briefly thank a few individuals who have defined my Penn State experience.

Speakers Released, Collective “Who?” Uttered

Onward Debates: Private State University

Join Onward State: Spring 2019 Application

Want to be a part of the nation’s premier student-run media outlet? Want to have your words read or your pictures seen by hundreds of thousands of readers and social media followers? More importantly –do ya like having fun? Believe it or not, it’s that time again. Onward State is hiring for the spring semester and we’d […]

Your Guide To Finding Last-Minute Graduation Housing

If you and your family are entering your last spring semester with a lot less coordination, there are some still some limited but available options for graduation day accommodations.

Send this to a friend