Student Loan Overhaul

How many of you out there have student loans? I'm sure there are several who do. A little info for you who currently have loans, are thinking about taking on loans and/or will have future children who will attend university -

Since the bank-based loan program began in 1965, commercial banks like Sallie Mae and Nelnet have received guaranteed federal subsidies to lend money to students, with the government assuming nearly all the risk. Democrats have long denounced the program, saying it fattened the bottom line for banks at the expense of students and taxpayers.

Ending one of the fiercest lobbying fights in Washington, Congress voted 2 weeks ago to force commercial banks out of the federal student loan market, cutting off billions of dollars in profits in a sweeping restructuring of financial-aid programs and redirecting most of the money to new education initiatives.

- DAVID M. HERSZENHORN and TAMAR LEWIN of The NY TIMES

Read the full article here - it will take 2 minutes and is a great refresher on the issue.

http://www.nytimes.com/2010/03/26/us/politics/26loans.html?hp