Student Loan Debate Heats Up


April 28, 2009
by Scholarships.com Staff
As Congress moves forward with a federal budget plan for 2010, rhetoric is ramping up on both sides of what is proving to be one of the most contentious budget debates so far:  whether or not to eliminate the Federal Family Education Loan Program.  President Obama initially proposed this move in his budget outline, saying that a move to Direct Loans would result in a savings of $48 billion, money that could be put towards expanding the Federal Pell Grant program.

As Congress moves forward with a federal budget plan for 2010, rhetoric is ramping up on both sides of what is proving to be one of the most contentious budget debates so far:  whether or not to eliminate the Federal Family Education Loan Program.  President Obama initially proposed this move in his budget outline, saying that a move to Direct Loans would result in a savings of $48 billion, money that could be put towards expanding the Federal Pell Grant program.

After the Congressional Budget Office revised the estimated savings to $94 billion over 10 years, many members of Congress and several higher education professional organizations have been offering up tentative support for the plan.  Democrats on the joint budget committee have even begun paving the way for this portion of the budget to be eligible for reconciliation, a filibuster-proof process that will allow portions of the budget to pass with a simple majority vote in the Senate.

However, lenders and other groups have begun suggesting and campaigning for alternatives that would allow the bank-based student loan program to continue to exist while still cutting costs to some extent.  Concerns have been raised that Direct Loans will not be as efficient or as kind to borrowers in the long run, though the credit crisis has made the program especially appealing as FFELP has required repeated government interventions to avoid grinding completely to a halt.  With many schools voluntarily making the switch to direct lending based on the program's current stability, concerns have also been raised about a rapid expansion in Direct Loans overwhelming the program as it currently stands.  Others worry that eliminating FFELP may speed lenders' exodus from private loans, ultimately leaving many students in a worse place financially than they find themselves in now.

What's emerging is a war of words between banks and the President.  In a speech on Friday, Obama characterized lenders as, "gearing up for battle," to which he responded, "So am I. . . And for those who care about America's future, this is a battle we can't afford to lose."  Considering the President's popularity and lenders' tarnished reputations from crisis after scandal after crisis over the last two years, we may see big changes happening soon in student loans.

Just because there are millions of college scholarships out there doesn’t mean you have time to go searching, and many won’t even match your profile. We’ve done the work and Scholarships.com is totally free. We have the search algorithms and scholarships database, saving you time in searching, finding and applying to thousands of dollars in college scholarships. Get instantly matched to scholarships that meet your unique talents, skillset and strengths, only those you qualify for. Access a complete list of college scholarships now by conducting a free college scholarship search at Scholarships.com.

Discuss

Share your thoughts and perhaps thousands of students will benefit from your unique insight on the subject!



If you can read this, don't touch the following fields


 
The Supreme Court on Monday partially reinstated the POTUS' travel ban, exempting foreign nationals who have a credible claim of a bona fide relationship with a person or entity in the United States. Acceptable groups include students admitted to U.S. colleges and universities, employees who have accepted job offers in the U.S., and lecturers invited to speak to American audiences.

Supreme Court Partially Unblocks Travel Ban

June 27, 2017 9:08 AM
by Susan Dutca
The Supreme Court on Monday partially reinstated the POTUS' travel ban, exempting foreign nationals who have a credible claim of a bona fide relationship with a person or entity in the United States.

    When it comes to earning scholarships for college, some students have the go big or go home mentality and chase the big buck scholarship opportunities. Landing a huge scholarship may take more work - meaning more time spent on the application process and essays, needing strong recommendation letters and competing against a pool of highly-qualified students. If you're motivated to land a large dollar scholarship that can potentially pay for your entire college tuition, check out these generously-endowed scholarships:

Large Dollar Scholarships

June 23, 2017 11:01 AM
by Susan Dutca
When it comes to earning scholarships for college, some students have the "go big or go home" mentality and chase the big buck scholarship opportunities. Landing a huge scholarship may take

    Everyone knows big-name companies such as Google or Coca-Cola...but did you know that these companies also offer scholarship opportunities to help you pay for college? That's right! If you love these quality products and services, you may be interested these generously-endowed scholarships. Check out this list of brand name scholarships offered by the companies with which you are most familiar:

Brand Name Scholarships

June 22, 2017 2:44 PM
by Susan Dutca
Everyone knows big-name companies such as Google or Coca-Cola...but did you know that these companies also offer scholarship opportunities to help you pay for college? That's right! If you love

    Independence Day, also known as the Fourth of July, is the day in which we celebrate America's independence and freedom. Education has been, and will always be a great equalizer. Even though college can be expensive, it is still a fast track towards the American Dream and can be more easily attained with the help of financial aid in the form of grants and scholarships - which do not have to be repaid! Exercise your freedom this July and help make your college education dreams more affordable with these red, white and blue July 2017 scholarships:

July 2017 Summer Scholarships

June 22, 2017 11:43 AM
by Susan Dutca
Independence Day, also known as the Fourth of July, is the day in which we celebrate America's independence and freedom. Education has been, and will always be a great equalizer. Even though
POTUS Donald Trump is pushing for apprenticeship programs and intends to support the initiative with an apprenticeship grant program of up to $200 million, with special emphasis on industries such as information technology,  healthcare, and manufacturing. The college alternative initiative hopes to attract and prepare students for great careers that do not require a four-year degree or the massive debt that often comes with those four-year degrees and even two-year degrees.

POTUS Pushing Apprenticeship Programs, Grants in 2017

June 14, 2017 11:16 AM
by Susan Dutca
POTUS Donald Trump is pushing for apprenticeship programs and intends to support the initiative with an apprenticeship grant program of up to $200 million, with special emphasis on industries such as

    Summer is finally here and fall semester may be the last thing on your mind right now. However, you may be one of the many students who need to work a summer gig, save up, or rely on your parents and student loans to help foot your fall tuition bill. While those are all legitimate options, you now have more free time (and less homework and tests), so why not take advantage of these summer scholarships? It's not too late to earn free college scholarships to help pay for school. Use your downtime wisely by applying for these summer 2017 scholarships!:

Summer 2017 Scholarships

June 2, 2017 3:47 PM
by Susan Dutca
Summer is finally here and fall semester may be the last thing on your mind right now. However, you may be one of the many students who need to work a summer gig, save up, or rely on your

    In support of lesbian, gay, bisexual, transgender, queer (LGTBQ) Pride Month this June, Scholarships.com is adding more color to its themed scholarships with scholarships for LGBTQ students and allies. Scholarships.com is dedicated to bringing equal financial aid and free college scholarship opportunities for all students.

LGBT Scholarships for Pride Month 2017

June 1, 2017 11:42 AM
by Susan Dutca
In support of lesbian, gay, bisexual, transgender, queer (LGTBQ) Pride Month this June, Scholarships.com is adding more color to its themed scholarships with scholarships for LGBTQ students and