Banks to be cut out of the student loan business, Pell grants extended - Polidicks

[quote](Reuters) - President Barack Obama on Tuesday will sign into law an overhaul of the college student loan program which cuts commercial banks out of the student loan business, drying up a multibillion dollar profit stream. The student loan overhaul fulfills a long-time goal of Democratic lawmakers to end the bankers' role as middlemen and replace them with direct federal loans and aid to students. The White House said the change would save taxpayers $68 billion over the next decade. The money saved will help expand and strengthen the federal Pell Grant program for students. The change will cap college graduates' annual student loan repayments at 10 percent of their income, spends more at community colleges and awards $2.55 billion to historically black colleges and universities. article continues at link[/quote] [url]http://www.reuters.com/article/idUSTRE62T1FX20100330[/url] I'm rather divided - I have a cousin who's stuck in interest and transaction hell after getting a Sallie Mae loan out for around 50,000 thinking he could pay it off easily in a couple of years with a comfortable job. On the other hand, I'm not entirely informed on the current system of Pell grants or how this changes things - I always thought they were a form of relief for low-income families, not a general purpose system.

You do know this is part of the reconciliation bill for health care, right?

Yes. It's in the article. My hesitations are entirely on content.

Okay, just wondering cause there was a paragraph in the CNN article I posted that covered this too.

Republicans are going to rage about this, like everything else Democrats sign into law. [editline]10:21[/editline] I.T.T., Glaber rages about something that has zero effect on him.

Republicans will hate this because it will make it easier for people to get an education, which turns them away from being a republican This was sarcasm or was it

I'm thrilled that private banks are out of the student loan business. At least my interest will be going to something worthwhile instead of lining the pockets of Sallie Mae.

I understand the reasoning behind most of this, but why exactly are we awarding 'historically black' colleges and universities $2.55 billion dollars? Considering there are about 100 schools in that category, why does each school require 25 million dollars? If this money is going to be put into school funded scholarships, I think since it comes from the federal government it shouldn't be exclusive to 'black' colleges. They aren't exactly the most 'downtrodden' minority anymore.

[QUOTE=SilentOpp;21056436]I understand the reasoning behind most of this, but why exactly are we awarding 'historically black' colleges and universities $2.55 billion dollars? Considering there are about 100 schools in that category, why does each school require 25 million dollars? If this money is going to be put into school funded scholarships, I think since it comes from the federal government it shouldn't be exclusive to 'black' colleges. They aren't exactly the most 'downtrodden' minority anymore.[/QUOTE] Because the rich white man needs to give the disadvantaged black man a helping hand dontchyaknow It's called "white guilt", and it's one reason why racism is alive and well in our societies.