Anyone else see this? This is what Ross, SGU, & AUC use:
Obama pursuing direct student aid - Washington Times

i believe the articles states that obama wants to eliminate private loans in favor of direct federal loans only. i didn't see it mention anywhere that he wanted to eliminate federal loans. quite the opposite.

Read it closely... He wants to eliminate the FFELP... go to Ross's FA website, thats what they rely on... Please check for yourself...
http://www.rossu.edu/files/2008_%200...nningGuide.pdf

yeah he does want to eliminate the FFELP i agree. he wants to replace that with direct federal loans only, hence the title "obama pursuing direct student aid." i wouldn't be too worried about not having any loans available. he just wants students to borrow directly from the government and not private banks. this line affirms this:

The president's proposal would switch the federal student loan system entirely to direct lending from the government.

the only thing that would be change is who you will be borrowing from (the government directly).

as much as I hate Obama, I'll ahve to back him on this one, I read about it in a few places. He's obviously not planning to eliminate any loans whatsoever. The purpose is to add loans, by creating a new system that doesn't use banks and is cheaper. This will take forever to implement (or will never happen just like every other Magic Obama plan), but instead of going to like Bank of America, Chase, Sallie Mae or whatever, students would have to just go to a government run program. Right now the banks offer this service of distributing the Federal Staffords, etc to us, obviously not to help us, but cause the goverment gives them a ton of money to run the process of dealing with us. And the banks also get fees from us. Noone's taking just "our" loans away.

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B.S. Molecular and Cellular Biology - University of Arizona 2008
B.A. Economics - University of Arizona 2008

great...and then when the gov't runs loans as well as everything else, they can set their own interest rates due to having no competition. sounds great!!! although, I'd like to pay off student debts sometime in the near future after graduation.

basically he wants to eliminate the middle man

yes, but when there are several "middle men" competing to give one loan, the interest rate drops. if you eliminate the "middle men", where is the competition?

can still take out private loans if fed loans get higher interest rates, just the govt backed loans will be through the govt, he's cutting out the middle man for those. he would have a monopoly on people with poor/no credit as they need govt backed loans

if govt controlled the majority of student loans, what impetus would banks have to still be in the student loaning business? then they'd have to procure $ from somewhere else, like inc. mortgage rates, etc. it's not like the average joe is going to save money by getting money from the govt for student loans directly- it'll come back to haunt him further in life.

BO's plan sounds to me like medicaid version 1.2: the academic edition.