Results 1 to 8 of 8
  1. #1
    Join Date
    Apr 2009
    Posts
    332
    Thanks
    90
    Thanked 58 Times in 49 Posts

    "Student Aid and Fiscal Responsibility Act" is in effect, what does that mean for me?

    It says all new loans from July 1st will now be Federal Direct Loans, what does that mean? I stopped going to school 2 years ago because I did not want to borrow from Sallie Mae any longer, but now this new act is in effect, does that mean I can now borrow completely from the federal government and not have to deal with the shady private lenders?

    Say I need to borrow about $80,000 for school, do I borrow all $80,000 through federal direct loans? If so, what would the interest rates be when I need to start paying it back?

    Ok I continued to read up on this and it seems the federal loan amount is pretty much unchanged, just no longer goes through private lender channels but directly to federal, saving taxpayers billions of dollars. So does that mean that I'm only allowed a maximum of $31,000 out of $80,000 to be borrowed from federal direct loans, and I would still need to borrow the $50,000 from Sallie Mae?
    Last edited by tandy1000; July 19th, 2010 at 12:20 AM.


  2. Hide this ad by registering as a member
  3. #2
    Join Date
    Feb 2007
    Posts
    1,819
    Thanks
    1,540
    Thanked 1,837 Times in 521 Posts
    yes, it doesn't change much for students who get loans. It does make it easier to get federal aid, and how much aid you will get supposedly increases just a bit, but it still won't cover an entire expensive private schools' tuition. (though I dont know what school could cost 80,000 even with living expenses added?!! this isnt for just a year is it?)

    you could try other banks instead of Sallie Mae, PNC solutions.. Wells fargo had the least damaging "benefits" last time I checked their rates

  4. #3
    Join Date
    Apr 2009
    Posts
    332
    Thanks
    90
    Thanked 58 Times in 49 Posts
    Quote Originally Posted by zwarrior View Post
    yes, it doesn't change much for students who get loans. It does make it easier to get federal aid, and how much aid you will get supposedly increases just a bit, but it still won't cover an entire expensive private schools' tuition. (though I dont know what school could cost 80,000 even with living expenses added?!! this isnt for just a year is it?)

    you could try other banks instead of Sallie Mae, PNC solutions.. Wells fargo had the least damaging "benefits" last time I checked their rates
    The private art school I attended cost over $130,000 for the degree program, I heard that was normal for other private art schools as well, not too sure on that though.

    So $31,000 in FDL with a fixed interest rate, I'm loving that part! But, not the $50,000 in private lenders... I know Sallie Mae can turn into a nightmare, I'll look into Wells Fargo. Hopefully others will offer alternatives?

  5. #4
    Join Date
    Feb 2007
    Posts
    1,819
    Thanks
    1,540
    Thanked 1,837 Times in 521 Posts
    yeah 130,000 sounds about right. Also, the amount of federal aid you get increases every year that you stay in that school, so that's a plus. Did you try the Parent Plus Loan? If you can convince your parents to help you out, they can sign up for it and defer payments of that until you graduate, and you could pay the costs yourself (though that would have to be a promise though, Im not sure if its easy to change the names on who owes)

    I havent checked it, but maybe that method may have a lower interest rate than private loan (its also fixed). That method is also Federal

    edit: interest rate for parent plus loan is 7.9%, while private loans vary from 4% to 11% so it could be higher
    Last edited by nauvice; July 19th, 2010 at 11:53 PM.

  6. #5
    Join Date
    Feb 2007
    Posts
    1,819
    Thanks
    1,540
    Thanked 1,837 Times in 521 Posts
    I thought I would have to stop going to school because I couldnt get a loan, well I finally got one, thankfully. it'll cost me 68,000 (when Im borrowing 35) and that number will probably multiply be for my other 2 remaining years of school (that's not even counting the federal loan that I also will have to pay back). I'm looking at $200,000 + to get an art education

  7. #6
    Join Date
    Jun 2006
    Location
    Sacramento CA
    Posts
    347
    Thanks
    30
    Thanked 30 Times in 21 Posts
    There are no more private lenders for student loans .. Didn't you read all the rider bills added to the new BO health care BS.. the feds too over ALL loans.. ..what does this mean ..? It mean in you need a loan to get through school yhou going to have to pay for it ..and not in a good way...Its sad that any one would have to turn to a loan .. I was lucky not to have to but i didn't have free ticket I worked and got grants but still I could have taken the loan but I saw them as something kin to going to loan shark... Now the Feds will run the show...hmm how come I thin this not good and make Shark week on the Discovery channel look like show on gold fish? you see all you nice young people who think BO is going to give free fund to go to school and then just pay it back over time...guess again and learn to salute as you going to see that pay back in the military... yep you get to SEVER your country that has spend its tax dollars to put the butt of your through college and if you think I kidding go do the research for you self...Now what this has to do with health care and student loan is beyond me why take over the loan system and add it to a health bill? Anyone see why they would do that ? Anyone care?

    CC

  8. #7
    Join Date
    Feb 2007
    Posts
    1,819
    Thanks
    1,540
    Thanked 1,837 Times in 521 Posts
    wut. ccorsair, the reason it was added to the healthcare bill is to help save taxes, and there's no way it would have succeeded if it stood on its own because the private banks can and have always bought politicians.

    What the Bill did was simply remove the middleman. Before, the Federal Bank guaranteed to pay banks the loans they give out to students for financial aid, regardless if those students pay those loans back. That was a waste of tax payers money, and just free money given to those banks. Now with this bill, the money that would have usually been given for free to private banks can instead be used to increase the pell grant, and offer more financial aid to students.

    Does that mean there's no more private lending? No, they're unrelated. In fact most students who go to private schools still have to depend on private loans because federal financial aid does not cover all the costs. Federal loan has lower interest than private lending and are also more lenient in ways to pay them back.

    So I'm not sure where you get your propaganda from, but this bill facilitated student loans (though it didn't really change anything that much), not the opposite.

  9. The Following User Says Thank You to nauvice For This Useful Post:


  10. #8
    Join Date
    Jun 2006
    Location
    Sacramento CA
    Posts
    347
    Thanks
    30
    Thanked 30 Times in 21 Posts
    Hey no propaganda just some research and facts .. and a lot people I know who work in the FA dept at some of the Colleges telling me the Rules have change for getting a student loan and not for the good.. its not going to happen over night but there are some thing coming no one is going to like. You sound like you think the Health care bill was a great thing? how is making a bill that will cost trillions and fine people who can't afford any health insurance in the first place a good thing? I just don't see why they added the student loan reform as they call it to health bill .. there is no real connection to them. Banks are going bust but most need to go away .. people need to be able to afford a higher education. So how does adding this all into one large mess fix all the problems?

    CC

Similar Threads

  1. Super-charging the "fresh eyes" effect?
    By diamandis in forum Art Discussions
    Replies: 6
    Last Post: July 21st, 2013, 02:46 AM
  2. Little annoying "Drop" effect Wacom Intuos4
    By Jonny Dark in forum Wacom
    Replies: 6
    Last Post: January 14th, 2012, 07:59 PM
  3. SketchBook: Art_Addict :: """"""""""""" PRAHA DROP """"""""""""
    By Art_Addict in forum Sketchbooks
    Replies: 105
    Last Post: March 26th, 2010, 03:43 PM
  4. Replies: 29
    Last Post: September 15th, 2006, 11:21 AM
  5. Equivalent Painter "Glow" effect in Photoshop?
    By jubjubjedi in forum Photoshop
    Replies: 3
    Last Post: April 8th, 2006, 03:42 PM

Members who have read this thread: 0

There are no members to list at the moment.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Designed by The Coldest Water, we build the coldest best water bottles, ice packs and best pillows.