House Panel Addresses the Would-Be Student Loan Crisis :: Inside Higher Ed :: Higher Education's Source for News, and Views and Jobs

Permit the Department of Education to serve as a "secondary market of last resort" that would buy loans from lenders in the Federal Family Education Loan, or guaranteed loan, program that have been otherwise unable to raise new funds. We have taken critical steps today toward ensuring that the credit crisis in the financial markets does not jeopardize our federal student loan programs," said Rep.

Rubn Hinojosa (D-Tex.) House Subcommittee on Higher Education, Lifelong Learning, and Competitiveness, who co-sponsored the bipartisan bill.

Not surprisingly, the passage of the bill earned applause from lenders and predictions that the legislation would "represent a significant boon to the for-profit post-secondary companies," as Trace Urdan, an analyst with Signal Hill, put it in an e-mail message Wednesday. But it also came in for some criticism from advocates for students. The U.S.

Public Interest Research Group and the United States Student Association sent a letter to members of Congress in which they generally praised the expanded flexibility for parent loans but expressed a mixed assessment of the expanded loan limits.

Extending credit to students, while doing nothing to ensure that the most predatory schools are restricted from siphoning it off, offers little help to the low-income students typically preyed upon by such schools. Any increase in loan limits without significant enhancements to. Doug Lederman Want it on paper? Know someone who’d be interested? Forward this story. Want to stay informed?

Advertisement Comments Truth is stranger than fiction The Minority Report (the movie) has correctly captured the new zeitgeist of higher education. While no student or college has reported any problems accessing federal student aid to date" (emphasis added)." No one has been hurt, but they "might" be. I think I have heard this refrain before.

Thank you Mr. Cuomo. We now have a new standard for action. An asteroid could fall on our heads. I think we need a program to destroy all asteroids before this happens. If I lose my job I could become poor, I think the taxpayers should give me ten million dollars to make sure this does not happen.

It has not happened, but it might.. Chimera, at 8:45 am EDT on April 10, 2008 House hearings on federal student loans Very informative article.. If what we’ve read is true, this could indeed impact funding prospects for the security auctions needed over the next quarter to fund student loans for the September crunch when school starts again.

I do hope these hearings will at least expose what deregulation hath wrought in this new global economy. We have a lot of MBA cowboys out there dreaming up crazy quilt, get-rich-quick lending schemes that end up blowing up into Bear Stearns spectacles. These schemes mutate into the public domain as teaser-rate mortgages given to folks with no income verification required.

Then, two years later, when folks can’t keep up with these ARM mortgages, they default. You should not have to graduate Wharton to understand how your mortgage works. Kudos to the Congress for these hearings. Let’s hope they wake people up. 9:05 am EDT on April 10, 2008 try getting a private education loan..

The credit crunch is very real and although Congress is trying to make sure the incompetent Spellings-led ED ensures FFELP and DL for students; and student who depends of private loans to supplement their education is in dire trouble.

However you feel about Cuomo’s effort to police the national tertiary education system from NY’s AG office is irrelevant to this situation. Derek, at 11:30 am EDT on April 10, 2008 Irrelevant?? Not a problem as I have a great credit score. It is those who do not who will have a problem. The credit crunch is very real and although Congress is trying to make sure the incompetent Spellings-led ED ensures FFELP and DL for students; and student who depends of private loans to supplement their education is in dire trouble."

I never said anything about the credit crunch, your conclusion is based on air. It is indeed real. We agree about the incompetence of Spellings et al. As far as students needing to supplement their education, it is the "supplementing" that is a part of the problem. If a poor student cannot get a private loan there are other alternatives, including transferring to a less expensive school. Again, not worried about rich students who are by far the major borowers of these loans.

However you feel about Cuomo"s effort to police the national tertiary education system from NY"s AG office is irrelevant to this situation." My comparisons had more to do witn my observation of the "new standard" i.e. Politicians with a solution looking for a problem frighten me, and they should frighten you too. My "feelings" about Cuomo are probably too complicated for you to understand, but are not the issue.

I may be a fool, but I know when I am be played for a fool. Get past you self serving attitude. Chimera, at 3:15 pm EDT on April 10, 2008 You Can Bet Your Sweet Bippy.. Not hot air. I just received my FAFSA statement saying that I was not eligible for aid - not even a loan.

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