The House of Representatives voted in favor of legislation that makes the U.S. Education Department the sole supplier of student loans. It’s going to cut out private lenders and leave the government as the sole provider of student loans under federal programs.
The cost of student loans won’t change, the only difference will be the source of the loans—the government instead of private lenders.
This is a defeat for Sallie Mae and other major banks.
The college loan business is a $92 billion business. The bill will save taxpayers $87 billion over the next decade according to the nonpartisan Congressional Budget Office.
What does this mean to the average student?
Not much. This doesn’t change the federal student loan eligibility rules, application process, or repayment process as far as the college student borrower is concerned. You will still apply by filling the Free Application for Federal Student Aid (FAFSA).
There will be an increase in Pell Grants (not an increase in the amount of recipients, but the amount each recipient receives) and possibly more Perkins Loans. There will also probably be lower interest.
For more scholarship & grant information visit: www.findacollegescholarship.com