>>>>Use reconciliation to take over student loans in the future or to pass healthcare? I don't think anyone is publicizing the option of reconciliation to pass healthcare reform. Only takes 51 votes...
>>>>
>>>>http://cnsnews.com/news/article/60074
>>>
>>>I believe that article misrepresents things pretty badly. The reason Obama wants the government to become involved is that banks have been walking away from reduced rate student loan programs en masse. Those loans -- I had one, from a bank near home -- are an investment in our future. IMO this would be a very good use of tax money.
>>
>>And you know this as fact how? Given what Obama promised and what he has actually done (no I won't make you suffer through a list since it has been posted here ad nauseum) are you still so sure of what he wants and why he wants it? Still, is it a good idea for the government to become a lender (bank)? Obama is reaching for ways to collect money from the public without raising taxes even more than he already plans to. This is just one more in the list...
>
>I disagree. Banks have been dropping their student loan programs left and right. I personally know friends of Allie's who have had to interrupt their college studies because their loans went away.

Subsidized and unsubsidized student loads that are backed by the government will not change. The only way their student loans "went away" is if they had private student loans through banks and that bank chose not to continue student loans - even those backed by the govt. A federally backed student loan doesn't "go away." It is available directly and through other banks. That will not change at all. You are missing what is changing. Only the government backed student loans will change. You have to qualify for those (by income). They do not "go away" and have nothing to do with banks now. If they are not receiving a federally backed student loan then either their parents earn too much money so they do not qualify for the government student loan (subsidized or unsubsidized) or they went to a private bank for a non-government backed student loan. The government students loans (federal loans) are issued directly through the FFSA registration and application process and go directly to the school (my daughter has student loans but they are unsubsidized and are processed directly through FFSA and the college. She does not receive a check - the college does. She only receives a balance check later in the year - much too late to buy books).

http://www.fafsa.ed.gov/