So, I went to go pay my student loans today and I saw this message on the screen:
“If you are applying for a Stafford or PLUS loan and the loan is for an academic term that will begin on or after July 1, 2010, you should contact the financial aid office at your school or the school your dependent student is attending.
– Legislation passed that eliminated the Federal Family Education Loan Program (FFELP) and requires all student loans to be disbursed by the Federal Government through the Federal Direct Loan Program (FDLP) effective for any loan first disbursed on/or after July 1, 2010.
– If you apply for a PLUS loan another credit check will be completed through FDLP. Multiple credit checks may adversely impact your consumer credit rating.”
Now, this of course doesn’t affect me. I’m not applying for a new loan. On behalf of all college and graduate students out there, I just want to thank the POTUS for authorizing the government to take control of the student loan industry so promptly. Because, the student loan industry really needs the government to intervene. The madness had to be stopped some how, some way.
Did I miss the headline somewhere? Was the financial industry in so much calamity that lenders of student loans were such demons that the saintly federal government had to step in and free those who are being oppressed?
I’m lost on this one, folks. Absolutely lost on this part of the bailout plan.