Good financial aid news!

[allover]

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I really like the lower interest rate, among the many positive changes

http://www.huffingtonpost.com/2010/07/20/student-loan-reform-seven_n_652365.html#s115954

 

[plauto]

old news, and BS news honestly. The vast majority of our loans are Stafford and they did not do anything about them. In fact, now we're being charged origination and default fees through the direct loan program while some private lenders like Discover did not charge fees before. Classic government BS. It looks good on paper, but makes things worse in practice.
Just remember when election time comes....

 

[janV88]

What does..."Borrowers who accumulated a large debt over time can opt to base their payments upon the current balance of their loan instead of their original debt load."...mean???

 

[allover]

i still think its good news over all. 🙁

 

[avatarftw]

I hope that you noted that the lower interest rate is for UNDERGRADUATE students and not graduate/doctoral students.

I really like the lower interest rate, among the many positive changes

http://www.huffingtonpost.com/2010/07/20/student-loan-reform-seven_n_652365.html#s115954

 

[plauto]

i still think its good news over all. 🙁

In what way exactly? Again, our loans cost 2 to 3 percent more this year thanks to the govt tAkeover

 

[UserNameNeeded]

I think allover's saying it's good for the taxpayers now that the government subsidies to private lenders is gone.

 

[plauto]

I think allover's saying it's good for the taxpayers now that the government subsidies to private lenders is gone.

I'm a taxpayer in addition to being a receiver of student loans, and, again, my loans are 2-3% more costly this year while my taxes did not go down 2-3% this year. So, again, how is it good for the taxpayer? It might be good for the government, but not for the taxpayer nor the student.

 

[235009]

old news, and BS news honestly. The vast majority of our loans are Stafford and they did not do anything about them. In fact, now we're being charged origination and default fees through the direct loan program while some private lenders like Discover did not charge fees before. Classic government BS. It looks good on paper, but makes things worse in practice.
Just remember when election time comes....

let me illustrate how you're misinformed/wrong with a history of my loans from the past three academic years:
2007-2008: Citibank, no origination fee
2008-2009: Citibank, 1% origination fee
2009-2010: Federal Direct Loan, 0.5% origination fee

as you can see most (if not all) the private companies have dropped whatever perks they used to give so federal direct is definitely the way to go. not only are you getting a better deal up front but you are getting a better deal as a taxpayer.

also i looked up discover's loans and they also have a 1% origination fee on stafford loans (4% on grad plus!!) ...so yes, it's actually good news for you that there is this government "takeover" and you are unappreciative because you are uninformed and blinded by your partisan allegiance

 

[plauto]

let me illustrate how you're misinformed/wrong with a history of my loans from the past three academic years:
2007-2008: Citibank, no origination fee
2008-2009: Citibank, 1% origination fee
2009-2010: Federal Direct Loan, 0.5% origination fee

as you can see most (if not all) the private companies have dropped whatever perks they used to give so federal direct is definitely the way to go. not only are you getting a better deal up front but you are getting a better deal as a taxpayer.

also i looked up discover's loans and they also have a 1% origination fee on stafford loans (4% on grad plus!!) ...so yes, it's actually good news for you that there is this government "takeover" and you are unappreciative because you are uninformed and blinded by your partisan allegiance

so you're saying I don't know the terms of my loans?
Partisan allegiance has nothing to do with it. We had 0% origination fees with Discover Stafford loans up to the govt takeover. The government charges origination fees. How much simpler can I make this for you to show this is costing us more money this year? It's good that the govt is (on paper) saving money, but how is that good for us if we are paying more for our loans?

 

[235009]

so you're saying I don't know the terms of my loans?
Partisan allegiance has nothing to do with it. We had 0% origination fees with Discover Stafford loans up to the govt takeover. The government charges origination fees. How much simpler can I make this for you to show this is costing us more money this year? It's good that the govt is (on paper) saving money, but how is that good for us if we are paying more for our loans?

the banks reinstituted the origination fees because of the financial meltdown (that they caused) and NOT because of the "government takeover" ...since they weren't raking in the profits like they once were they had to find other ways to make up the lost ground (taking the hit themselves is always completely out of the question) ...you have your cause and effect all wrong

i dont understand how the government is saving you money on paper and at the same time you are paying more for your loans? those two statements are in complete contradiction. It seems like you are comparing your government loans now to your bank loans from 2 years ago....sorry it doesn't work that way... the correct comparison is "how much would i be paying if i were to get a bank loan NOW" and the answer to that question is that you'd be paying more..there's no way around it

 

[devlyyn]

Uh, I got my loans last year and I didn't have any origination fee and it was during the height of the financial meltdown. I had a choice in my lender too. Now I have a 1% origination fee and no choice of lender. I haven't looked into the big picture of why this change was made, but the FACT is that I am paying more for my loans this year than I did last year. I think thats what the other poster was trying to say.