Uncle Sam plans to be sole student lender
Congress has passed the Student Aid and Fiscal Responsibility Act спалниand is awaiting passage by the Senate so the feds can be the sole student lender for Stafford and Perkins Loans. Hopefully by cutting out the banks, the Pell Grant will be able to be increased, and possibly the 3.4% repayment rate on Stafford Loans by 2012 will be kept, rather having the rate revert back to 6.8%.
This will not reduce borrowing rates, but it will ensure that necessary funds will be there, as the gov’t has no shortage of money – now or in the future.
