I stumbled upon Arne Duncan’s WSJ opinion article last week talking about the impact of bank FFELP loans on tax payer dollars and the arguments for and against the government’s direct lending program. The future of the Direct Lending Program inevitably raises several questions for the future of banks’ student loan products such as:
- How are banks going to manage their existing FFEL portfolio?
- How will the Direct Lending program affect bank’s servicing on student loans without the protections of FFELP?
Banks Don’t Belong in the Student Loan Business
They get billions in federal subsides that can provide financial aid to needy students
By ARNE DUNCAN
Since I arrived in Washington, I’ve been looking at every line item in the budget of the U.S. Department of Education with two questions in mind: Is this program helping students learn? And is it a good use of taxpayer money? In the case of the Federal Family Education Loan (FFEL) program, the answer to both questions is no. Read More
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