Policymakers Seek to Ensure No Disruptions In Student Loan Availability
Congressional leaders are considering a variety of bills to impede a late summer student loan crisis.
3 Responses to “Policymakers Seek to Ensure No Disruptions In Student Loan Availability”
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May 15th, 2008 at 3:17 am
This Bill does nothing to keep lenders in the program. Lenders are subject to an excess interest penalty that requires that they refund the difference of what the borrower pays 6.8% and what the lender earns 3.99 so a lender earns a gross of 6.8-3.99 =2.81 TAX so 3.99-2.81=.38 gross earning for the lender. Cost of funds is 1.5% so .38-1.5=-1.12 gross earning on a student loan. New bill does not help this issue since lender pay a 1% fee to participate in the program. Net income before tax is -1.12+-1=a loan loss of 2.12 before operational expenses.
LENDERS WILL CONTINUE TO EXIT PROGRAM…..
May 15th, 2008 at 5:37 pm
And we want to turn our health care over to these people? The student loan fall out we are seeing is just one more reason why the government should control as little as possible. Let the markets do their job.
May 15th, 2008 at 7:15 pm
This place does loans for bad credit, or people with bad credit. They are really good!