As a summer intern in the Capitol Hill office of Senator Sam Brownback (R-KS), I had the opportunity to learn a great deal about many issues in American politics, such as conservative and liberal ideologies, climate change policy, abortion legislation, and education reform, just to name a few. I also had the opportunity to bear witness to the many debates and opinions that shape American politics. Even though I did not agree with all of the voices that weighed in on the television networks and over the airwaves, their passion for the matter at hand inspired me to re-examine how my political beliefs translated into action in the real world, especially as it pertains to my education.
During my internship, I had the privilege of sitting in on a meeting between Senator Brownback and one of his policy advisors to discuss recent developments in federal funding for education. They discussed the Federal Family Education Loan Program (FFELP) or, to be more specific, recent changes to funding for this program.
The FFEL program was established in 1965 thanks to the Higher Education Act. By partnering with universities, colleges, and private loan companies, FFEL provides four types of federally guaranteed loans for students, all of which are used throughout American colleges: Stafford Loans, Unsubsidized Stafford Loans, Federal PLUS Loans, and Federal Consolidation Loans. Though these programs differ by interest rates and payment periods, these four programs account for 75% of privately financed federal student loans in the United States. In contrast, the Direct Loan (DL) program gives students low-interest loans directly from the federal government; every single dollar disbursed by this program comes directly from the United States Treasury. The standard loan package offered by the DL program requires students to pay a fixed amount each month, with a ten-year deadline to repay their loans.
Currently, both programs receive government funding. However, President Barack Obama's budget proposal for fiscal year 2010 eliminated funding for the FFEL program in favor of the DL program. The Senate passed President Obama's budget proposal on April 29. The president's administration justified this decision by claiming that it would yield gross savings of $87 billion for the federal government between the years 2010 and 2019.
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Monday, December 28, 2009
Tuesday, December 15, 2009
Loans For College Students: Where To Start?
As a matter of fact, the income of the parents should not be an obstacle for their children to get a good quality education. Indeed, it is good news for everyone that hard working students, who suffer from poor financial resources, still have a solution to get the education they deserve. This is due to the widely accepted option of getting loans for college students, which is theoretically available for everyone.
Does it worthwhile to adopt this idea?
Despite being a loan, it has a lower rate of interest and you can pay back the money through long time frame.In some cases, the time period is up to 10 years after your graduation date. In addition, it is a better choice for people who are willing to study, work hard, and then pay off their debt.
Can you apply directly to the government?
Traditionally, it is not possible to send your documents directly to the federal state. Nevertheless, it does not sound like the government has turned a blind eye for the poor people.
Every single year, federal grant money for colleges is widely distributed. Indeed, the question of the amount is strongly related to many factors that may be changed from year to another but we usually talk here about millions of dollars that are used to extend the financial capabilities of the universities. This amount has to be used to offer loans for college students.
Do you have any other possibility?
Yes, you do have. Banks are working towards helping people unanimously. Thanks to the debt consolidation program, parents have an easier burden of paying back the money and the interest rates are better than what they used to be.
In fact, this has encouraged more people to approach banks for getting financial aids and work towards realizing their goals and ambitions. As education is of prime importance in the present time, one should ensure that he gets the best that he can for his skills.
Are you alone on the way to borrow money for your studies?
Indeed, reading online statistics should tell you how much popular this concept is and how many thousands of people do not feel worry anymore about getting loans for college students. This is especially true since almost 50% of the parents lack the power to finance their children on their own and, therefore, looking for financial aids is the only solution.
They offer the best benefit for each one to get a good education without taking into account what his financial situation is. Finally, from your side, you should work on getting the optimal saving money tips during your undergraduate life.
Source
Does it worthwhile to adopt this idea?
Despite being a loan, it has a lower rate of interest and you can pay back the money through long time frame.In some cases, the time period is up to 10 years after your graduation date. In addition, it is a better choice for people who are willing to study, work hard, and then pay off their debt.
Can you apply directly to the government?
Traditionally, it is not possible to send your documents directly to the federal state. Nevertheless, it does not sound like the government has turned a blind eye for the poor people.
Every single year, federal grant money for colleges is widely distributed. Indeed, the question of the amount is strongly related to many factors that may be changed from year to another but we usually talk here about millions of dollars that are used to extend the financial capabilities of the universities. This amount has to be used to offer loans for college students.
Do you have any other possibility?
Yes, you do have. Banks are working towards helping people unanimously. Thanks to the debt consolidation program, parents have an easier burden of paying back the money and the interest rates are better than what they used to be.
In fact, this has encouraged more people to approach banks for getting financial aids and work towards realizing their goals and ambitions. As education is of prime importance in the present time, one should ensure that he gets the best that he can for his skills.
Are you alone on the way to borrow money for your studies?
Indeed, reading online statistics should tell you how much popular this concept is and how many thousands of people do not feel worry anymore about getting loans for college students. This is especially true since almost 50% of the parents lack the power to finance their children on their own and, therefore, looking for financial aids is the only solution.
They offer the best benefit for each one to get a good education without taking into account what his financial situation is. Finally, from your side, you should work on getting the optimal saving money tips during your undergraduate life.
Source
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