More Government takeover

[Tangerine]

Did anyone notice today that Obama signed into law a bill that removes all private lending instutions from the business of student loans? From now on, ONLY the Federal Goverment can make student loans.

Why has there been no public discussion or debate about this? This is a billion-dollar industry that was just shut down and taken over Uncle Sam.

I have mixed feelings about this, because I'm becoming increasingly alarmed at the rate and scope of growing Government. But I'll admit I'm damned happy that Sallie Mae - aka the Evil Empire - just took it right up the ass to the tune of a few hundred million.

 

[dt3]

Link or it never happened :dunno

 

[Accountable]

Student loans get an Obama overhaul

Law makes government the primary lender.

By Darlene Superville
Associated Press
WASHINGTON - Bigger grants for low-income college students. Relaxed repayment terms on student loans. More money for community colleges and historically black institutions.

The law that President Obama signed yesterday - cutting banks out of the government-backed student loan business - will mean big changes for hard-pressed students and colleges.


The new law, part of a package that also includes fixes to the health-care overhaul, makes government the primary issuer of student loans.


continues:

http://www.philly.com/inquirer/front_page/20100331_Student_loans_get_an_Obama_overhaul.html

 

[edgray]

thats how they run them back home in Blighty - much lower interest than borrowing from a bank and much better and more forgiving payment terms.

should've really been discussed in public though - why the secrecy?

 

[porterjack]

i would think that governments should stick to regulations and policy and leave the operation of any industry, whatever it may be to regulated, accountable institutions

 

[Guyzerr]

thats how they run them back home in Blighty - much lower interest than borrowing from a bank and much better and more forgiving payment terms.

should've really been discussed in public though - why the secrecy?

It's run the same way in Canada and has been for years.

 

[AnitaBeer]

I've heard about this a few times and then heard it passed yesterday on the news. Doesn't seem like it was a secret to me...?

 

[Tim]

You guys really need to get your facts straight before getting your panties in a twist.

Obama signed into law a bill that removes all private lending institutions from the business of student loans

The federal government made zero changes to private lending institutions concerning student loans. You can still go to your local bank/credit union and get as many student loans as you wish.
The change only concerns federally guaranteed student loans. Instead of paying billions in subsidies to private banks to issue these federally funded loans, the federal government will issue the loans directly.

 

[edgray]

You guys really need to get your facts straight before getting your panties in a twist.

thanks for clearing that up

 

[Tangerine]

You guys really need to get your facts straight before getting your panties in a twist.



The federal government made zero changes to private lending institutions concerning student loans. You can still go to your local bank/credit union and get as many student loans as you wish.
The change only concerns federally guaranteed student loans. Instead of paying billions in subsidies to private banks to issue these federally funded loans, the federal government will issue the loans directly.

I know exactly what changed. Forgive me for wording it less clearly than I could have. The "only change" you speak of is not some little insignificant detail. The vast majority of education loans ARE affected.

Private lenders can still make student loans that are not backed by the government, and they will continue to have contracts to service some federal loans. But the new law represents a significant change in what has been a multibillion-dollar business for the banking industry.

 

[Zorak]

You guys really need to get your facts straight before getting your panties in a twist.



The federal government made zero changes to private lending institutions concerning student loans. You can still go to your local bank/credit union and get as many student loans as you wish.
The change only concerns federally guaranteed student loans. Instead of paying billions in subsidies to private banks to issue these federally funded loans, the federal government will issue the loans directly.

Should have been done long ago lol

 

[Tim]

Did anyone notice today that Obama signed into law a bill that removes all private lending instutions from the business of student loans? From now on, ONLY the Federal Goverment can make student loans.

Why has there been no public discussion or debate about this? This is a billion-dollar industry that was just shut down and taken over Uncle Sam.

I have mixed feelings about this, because I'm becoming increasingly alarmed at the rate and scope of growing Government. But I'll admit I'm damned happy that Sallie Mae - aka the Evil Empire - just took it right up the ass to the tune of a few hundred million.

I know exactly what changed. Forgive me for wording it less clearly than I could have. The "only change" you speak of is not some little insignificant detail. The vast majority of education loans ARE affected.

It's not a matter of not being clear with your words, it was a matter of being incorrect. You clearly said that ONLY the federal government can make student loans and that isn't even close to the case. And they aren't removing any private lending institutions from the business of providing student loans... :dunno

 

[retro]

I'd really like to know what this has to do with health care... it should never have been tacked onto that legislation. But that's the way that things go in Washington... /sigh

 

[Tim]

I'd really like to know what this has to do with health care... it should never have been tacked onto that legislation. But that's the way that things go in Washington... /sigh

I'm curios to know when the last time a bill went through "clean" I mean is that even done? :dunno

 

[retro]

I'm curios to know when the last time a bill went through "clean" I mean is that even done? :dunno

I'm not debating whether or not it happens, I'm saying that it shouldn't happen. Especially with something like this... it's like they just tacked it onto the end of the bullshit health care "reform" legislation as a way of getting it passed without anyone knowing.

 

[Tangerine]

It's not a matter of not being clear with your words, it was a matter of being incorrect. You clearly said that ONLY the federal government can make student loans and that isn't even close to the case. And they aren't removing any private lending institutions from the business of providing student loans... :dunno

The unclear part with my words was that I didn't inlcude the word GUARANTEED. With this law, only the Federal Government will be allowed to make guaranteed student loans.

And the latest data I've is that 74% of all GSL's were from private lenders, through the FFELP program. So if 74% of the market is now going to be forced to go to Federal Direct loans, then yes, I would say they are removing a large portion of their competition. Will those companies still be allowed to offer un-guaranteed student loans? Sure. Will they? No, because that is not, and has not been their business. They are being forced to either move into a much smaller (and far less successful) niche, or close up shop.

 

[Accountable]

What part of our Constitution sets up a federal student loan agency?

 

[Tim]

What part of our Constitution sets up a federal student loan agency?

What part excludes it?

Are you saying that even though this was enacted in the late 50's and no one has successfully challenged it as unconstitutional?

Highly unlikely...

 

[Accountable]

What part excludes it?

Are you saying that even though this was enacted in the late 50's and no one has successfully challenged it as unconstitutional?

Highly unlikely...

If it is not explicitly permitted, it is explicitly prohibited. I don't have to tell you that. And yes, an unconstitutional law stays on the books so long as no one challenges it, or even then if the SC decides not to hear the challenge. The SC doesn't have the balls to directly challenge Congress by calling foul on their own. Don't ask me why.

 

[Tim]

If it is not explicitly permitted, it is explicitly prohibited. I don't have to tell you that. And yes, an unconstitutional law stays on the books so long as no one challenges it, or even then if the SC decides not to hear the challenge. The SC doesn't have the balls to directly challenge Congress by calling foul on their own. Don't ask me why.

Well that's the difference between us, you believe in dual federalism and I believe in cooperative federalism. Both have their merits, both have their history in the states.
The problem I have with dual federalism is that it's not that far confederation which would never work in the US. Yet I would never want the US to go to the other extreme of a unitary system...