A house bill that would boost Pell Grants and kill subsidized student loans has gained widespread support and will go next to the Senate, where its fate is still uncertain. Supporters say it would save an estimated $87 billion, although critics have disputed that figure.
Republicans disagree with putting the government in near-total control of student lending, and many worry about the job losses that would inevitably stem from cutting private lenders. More than 30,000 jobs rely on the subsidized loan program, and many positions would be eliminated. The biggest student lender, Sallie Mae who currently employs 8,500, said it would have to cut about 30% of its workers if the subsidized loan program is cut.
If the bill is passed, college students would not see much of a difference in their loans, which they would get from their schools. However, the measure would keep interest rates for some federal loans, based on need, from jumping to the scheduled 6.8% in 2012.
http://finance.yahoo.com/news/House-bill-would-kill-apf-2938854770.html?x=0
Comments
Pardoning loans of graduates who are unemployed and are living below the poverty level might help both the graduates and the economy, on many levels.
#Do you Want to say something?