NEW OBAMA STUDENT LOANS PLAN SIGNED INTO LAW TODAY
The Obama student loans reform of 2010 will be signed into law today and with it will come more government control of our lives. The bill is designed to take out the private sector from the student loan process with the assumption that the U.S. government can loan the money out to students and give them better rates.
This bill was part of the Obama health care bill but it had to be voted on separately which is why it was delayed until today. This is a complete revamping of the student loans and grants process just like the health care system is going to see big changes made. But, just like health care, none of this kicks in until 2014 when Obama may not even be President anymore!
There are some good things for students like the expansion of Pell grants and this new law makes it easier to repay loans and says that you can’t be required to pay more than 10% of your income. Also the hope is that the interest rates charged will be lower but right now that just a hope. The big question seems to be this: how is this new Obama student loans plan going to affect our children’s ability to get loans?
With the cost of college and university so high right now, most students need to get some sort of a loan or grant to be able to go. In the past, they could get loans from banks or other private lending institutions but starting July 1st in 2014, everything will have to go through a government channel. Does this mean that some government bureaucrat in Washington is going to be deciding who goes and who doesn’t go to college? Are there going to be quotas and some kids won’t get loans based on the color of their skin or their parents income?
Do we really want the Department of Education controlling which of our children get loans and are able to go to college? Is this new Obama student loans reform act really a good thing in the long run? And why do we have to wait until 2014 for it to start? Millions of students will be affected by this new bill but until then everything will be the same with students trying to get stimulus money and Obama school grants so that they have enough money to pay for the high price of getting an education.
