Banks to Lose Billions
source: http://www.msnbc.msn.com/id/36014592/ns/business-us_business/
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- JonRaymond
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New plans by the feds threaten to kill the banks' lucrative student loan business. Boo hoo.
Industry lobbyists have watched helplessly as Democrats and the Obama administration appear on the verge of shifting student lending from private banks to the federal government.
Under the measure, private banks would no longer get fees from the government for acting as middlemen in loans to low- and middle-income students. With those savings, the government would increase Pell Grants to needy students and make it easier for workers burdened by student loans to pay them back.
Industry lobbyists have watched helplessly as Democrats and the Obama administration appear on the verge of shifting student lending from private banks to the federal government.
Under the measure, private banks would no longer get fees from the government for acting as middlemen in loans to low- and middle-income students. With those savings, the government would increase Pell Grants to needy students and make it easier for workers burdened by student loans to pay them back.
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- groups:
- Community, US Congress Watch, Economy, Big Business, 1 more
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- tags:
- News, Bailout, Banks, Healthcare Bill
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UrbanGypsy
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A $40 billion boost for higher education and all against the ferocious lobbying of banks. This affects me directly. I pay around 75% of my tuition and costs with a scholarship from the state of Florida. The other 25% I make with money from my federal Pell Grant.
Its all I have and even then I still have to pay hundreds of dollars every semester on books. With those costs I usually use up all of what is left over from my Pell Grant.
- 2 years ago
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UrbanGypsy
