Bad Credit Online Magazine - Daily News and Advice on Credit, Debt and Mortgage : Student loan loophole that benefit banks can be closed shortly.

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July 09, 2005

Student loan loophole that benefit banks can be closed shortly.

When you got your student loan you helped yourself to get a higher education. That is what student loans for. What you didn't probably know that you might have helped the lender also. Certain student loans have 9.5% subsidy from the US government. That is for the banks not the students. The practice goes back into the 80s when the interest rates were high and not too much cash was available for student loans.

Now with the rates dirt cheap and plentiful cash, education secretary, Ms. Margaret Spellings moves to revoke this subsidy.
That is from New York Times.

We agree, banks have plenty of dough, use this subsidy to pay a tiny bid of trade deficit or towards a non oil fuel research.

Posted in Student Loans at July 9, 2005 11:24 PM

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