student loan provision in budget

[Beer Snob-50]

while i agree with the provision that we have to help more lower income individuals to go to college, i don't support the idea that we have to cut out regular government subsidized loans to the middle class. my wife and i make too much for our son to qualify for pell grants. thus we have gone the subsidized loan route. as of moment, there is a chance that these loans will go bye bye in the current budget.

your thoughts.

[elleng]

1. They'd better not!

We may do so again, and we and many need the 'break,' such as it is.

[Beer Snob-50]

2. i was just reading an article about that on the msnbc site

howver senator nelson of colorado has a company in his state that makes these loans and they would have to cut 1000 jobs if this goes through. my son got his through vt, and i am sure that sen leahy would also be against this.

[PA Democrat]

3. I could be wrong, but my understanding was that the government was eliminating the subsidies to the

banks making the loans, not the loans themselves. The Federal government was essentially paying banks a bonus for taking on the loans. The banks were also making money on the interest collected. More info here.

http://www.consumerismcommentary.com/2009/03/02/changes-ahead-for-federal-student-loans/

[MrsBrady]

4. will they still loan the money, then?

I don't like giving them subsidies, but will they loan the money.
It certainly won't be low interest if they do?

I worry about this. I am trying to finish a long over due college degree.
I'm a married, 36 year old female...with a joint "working class-middle class" income.

They don't give grants or subsided loans to my type. I could only get an unsubsidized loan. It was at 6.something percent.
You think that interest rate might go up now, if they even loan me money now at all?

[PA Democrat]

6. I honestly don't know. Obama's intention is

to use the money that was given to the banks in the form of subsidies to actually make MORE loans available. I'm not sure how they hope to accomplish this because it seems the banks right now don't want to extend loans of any kind. My son also was ineligible for any grant money because of our income and because he has money in a 529 account although the amount is far below what he'll need to finish school. I'd hate to see people have to drop out because funding dries up.

[Beer Snob-50]

5. thnaks for the correction..

i have a feeling it will still reduce the product offered, but hopefully there will still be services offered to the middle class, who make too much for federal aid, but not enough to really afford college.