I'm not sure how I feel about this story. Apparently Citigroup is lobbying for people to oppose the President's new proposal to lend government-backed student loans directly to students. This would eliminate the "middleman," and possibly create a new department/agency/"bloated government wasteful entity" to handle student loan lending.
On one hand, I like the concept of not having to work through institutions like SallieMae to get money for college, but I'm partially opposed to bigger government.
There's a few things about Citigroup's letter that offend me. I don't believe that privatization of student loans actually has any beneficial effect on students. I know in my lending experience, I rarely examined the lender, and regualarly went with my school's suggestion. Also, I don't think that counseling programs are beneficial in helping students establish good behaviors (i.e. the bankruptcy process), rather they're simply another way to inform borrowers about the responsibility of paying back the loans.
I can't tell how to vote or feel, because I don't know, but you should definitely be aware of this push.
On one hand, I like the concept of not having to work through institutions like SallieMae to get money for college, but I'm partially opposed to bigger government.
There's a few things about Citigroup's letter that offend me. I don't believe that privatization of student loans actually has any beneficial effect on students. I know in my lending experience, I rarely examined the lender, and regualarly went with my school's suggestion. Also, I don't think that counseling programs are beneficial in helping students establish good behaviors (i.e. the bankruptcy process), rather they're simply another way to inform borrowers about the responsibility of paying back the loans.
I can't tell how to vote or feel, because I don't know, but you should definitely be aware of this push.
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