Health Reconciliation, Student Lending Reform Are Law

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Tuesday, March 30, 2010 at 12:51 pm

President Obama this morning finalized (sort of) the Democrats’ sweeping health care reforms, signing into law the reconciliation bill that refines the larger reforms he enacted last week. Aside from tweaking the Senate’s version of the health care bill, the reconciliation measure also includes a huge overhaul of the nation’s student lending industry, eliminating $61 billion in federal subsidies to private companies.

“For a long time, our student loan system has worked for banks and financial institutions,” Obama said. “Today, we’re finally making our student loan system work for students and all of our families.”

Sallie Mae, the nation’s largest student lender, felt differently.

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ajm8127
Comment posted March 30, 2010 @ 5:20 pm

I got a Sallie Mae loan once because I was out of government financing options for school. The interest rate was a ridiculous 12%, double the rate that loans through AES have. The sad thing is, only people who need the money, i.e. those already without a lot to spare, get these loans and have to pay the high rates. My parent's combined income was less than $50k/year if I remember right.


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Comment posted March 31, 2010 @ 5:14 am

The real problem out there is that the Price of education has increased over got a Sallie Mae loan once because I was out of government financing options for school. .200% from 1983 on. In 1983 Student loans comprised a very small percent of a students way of paying for education, Today they comprise close to 99% .


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