Post by
Cold_Zero »
https://forums.nicoclub.com/cold-zero-u2277.html
Tue Jul 06, 2004 6:57 am
Bubba1-John Edwards wants to end all private participation in the FFELP program (which offers student aid to students) in order for the Government to completely run the program. Direct Lending (the Government) is a big player in the student loan market but there are players that are as equally big in the FFELP. If the Federal Government could run a program efficiently, I would not be as upset about John’s idea. Problem is, the Federal Government is grossly in-efficient with running programs and the Clinton Administration tried to federalize all of the FFELP by introducing Direct Lending. I remember hearing in the national news that Direct Lending was behind in its disbursements in the summer of 1999 to the tune of a few hundred thousand students waiting for their student loan checks. These are the same guys that subcontract the servicing of their loans, because they can not do it. The prospect of loosing my job so that the Federal Government can take over the student loan market is ridiculous. I personally think that this is a power move on John Edwards and others part to introduce bigger government and to take control out of the private sector's hand.
When I talk about participants with this issue, I am referring to Lenders, Consolidation Companies, Servicers, Guarantors, Secondary Markets as well as schools. You don’t think that people like NELNET, Citibank, Sallie Mae, as well all the lenders that participate in FFELP don’t have money to contribute to PACs and political races? It has been done before. When the Clinton Administration proposed to end private participation in the FFELP in the mid 90’s all the private and GSE participants in FFELP banded together to lobby Congress and were highly effective in making real changes in the program. Changes that were good for lenders and students.
Ps- this is my personal opinion and may not or do not reflect necessarily reflect the opinions of the FFELP participants.