Direct Loans

[Betty Harlan]

What do you think about the Direct Loan Bill that is half-way
through the legislative process? If and when this bill passes, all
Stafford and Plus Loan borrowers will have to switch over to Direct
Loans - for next year. This will mean that the student borrower will
have to complete a new Master Promissory Note.

For the colleges "Financial Aid Office, it means that they will now
have to process all loans - beginning next year - probably beginning
with the Fall Semester 2010.

For the student, it means that if they want to consolidate their loans
in the future, they will have to consolidate all Stafford, and Perkins
into the Direct Loan program. I'm sure it will probably be just a few
more steps...and not that big of a deal.

I really don't like the fact that students and colleges are not going
to be given a choice of going through bank lenders anymore.

Also, I know that this will cost our federal government billions of
dollars every year since the good old US of A will now be funding all
loans. This means that our country's deficit will be higher than ever.