Comments on: Here’s the Beef: Paying for College http://obamarama.org/2007/05/16/heres-the-beef-paying-for-college/ Let's get this Party started Wed, 20 Aug 2008 09:02:51 +0000 http://wordpress.org/?v=2.0.5 by: JHC http://obamarama.org/2007/05/16/heres-the-beef-paying-for-college/#comment-27384 Sun, 10 Feb 2008 17:26:06 +0000 http://obamarama.org/2007/05/16/heres-the-beef-paying-for-college/#comment-27384 Thanks for the important distinction, Katie. And thanks for reading the site. Thanks for the important distinction, Katie. And thanks for reading the site.

]]> by: Katie http://obamarama.org/2007/05/16/heres-the-beef-paying-for-college/#comment-27382 Sun, 10 Feb 2008 17:09:01 +0000 http://obamarama.org/2007/05/16/heres-the-beef-paying-for-college/#comment-27382 Just one clarification for you....the subsidized student loan is determined by the results of the FAFSA and the school's certification of the student's subsidized loan eligibility. It is NOT determined by whether the student loan comes from the Direct Loan program or from a lender in the FFELP industry. Students who borrower from FFELP providers get the benefit of a subsized loan if they are eligible for it; in addition, they get the benefit of lower or zero origination and default fees depending on their lender. In the Direct Loan program, fees are mandated and borrowers are not given a break on them. I don't agree with the practices of SOME of the larger FFELP providers like Sallie Mae and others that have gotten too big over the years. But there are many honest, nonprofit FFELP providers out there who reinvest their profits into their borrowers' pockets by giving them substantial discounts on their student (and parent) loans. Just one clarification for you….the subsidized student loan is determined by the results of the FAFSA and the school’s certification of the student’s subsidized loan eligibility. It is NOT determined by whether the student loan comes from the Direct Loan program or from a lender in the FFELP industry. Students who borrower from FFELP providers get the benefit of a subsized loan if they are eligible for it; in addition, they get the benefit of lower or zero origination and default fees depending on their lender. In the Direct Loan program, fees are mandated and borrowers are not given a break on them.

I don’t agree with the practices of SOME of the larger FFELP providers like Sallie Mae and others that have gotten too big over the years. But there are many honest, nonprofit FFELP providers out there who reinvest their profits into their borrowers’ pockets by giving them substantial discounts on their student (and parent) loans.

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