OBAMA DIRECT STUDENT LOANS 2010
It is now the middle of summer and the country still finds itself mired in all sorts of difficulties. Jobs creation is low and unemployment remains in the 9% to 10% range. People still have debt issues to deal with as they search for the Obama debt relief programs they have heard about. It seems there is no way out for many as the economy continues to worsen.
School will soon be starting and now is the time to be researching student loans and grants. While the Obama student loans bill passed earlier this year, will it change anything for 2010? I have tried to find information about specific changes and it is very hard to find anything current for 2010. The best place to go is here at this government direct loans site.
With the new bill, the banks have been cut out of the loan process and all student loans will be given direct loans by the government. The way it used to be was that all students would get their loans from private banks. These banks would handle all the maintenance for the loans and be subsidised by the US government. All your correspondence and dealings was with the bank you chose and you did not have the hassle of interacting with any government agency.
But things have now changed with the Obama student loans bill being passed earlier this year.
We all know how difficult it is to deal with any government agency and that is what is now going to happen with the Obama direct student loans program. All your questions and correspondence is going to have to go through one of the Department of Education’s call centers or processing divisions. The direct loan program is going to be responsible for all student loans for all students no matter where they live or where they want to go to school. Only time will tell if this is a good thing.
If you have a current student loan there will undoubtedly be a transition period and process you have to go through as the government takes over responsibility for all the loans. As this is all new, no one knows how many wrinkles there will be with the new system and how many problems will crop up. Hopefully it won’t be too bad and the money that is supposed to be saved with this new system will go toward Pell grants and Obama school grants.
