The proposal has thrown into question a deal that a group of investors had to buy student loan maker Sallie Mae for $25 billion.
The group, led by private-equity firm J.C. Flowers & Co., says it is no longer interested in following through with the $60-a-share deal because the terms of the sale are no longer acceptable since the legislation will affect its core earnings.
The bill also sets up a loan-forgiveness program for college graduates who work for 10 years in public service professions.
It also would cap annual payments for students at a percentage of their income.
Colleges would be forced to do one of two things (if their customers could no longer afford their services)....Reduce costs (cut bloated Prof salaries) or go out of business.
Corporate welfare for University, Inc.
Every college has become a profit-making business with all the benefits of non-profit status.
This will be helpful.
The title you used “Bush signs new student loan relief bill” was not the title at the linked source and had to be changed.
We’re trying to reduce the number of duplicate threads. Please do not alter titles. Just use the original published title.
Thanks.
Colleges are not run efficiently because a) people give them money for free and b) the government subsidizes them with low interest loans.
They sell a product, but the product is subsidized, therefore the colleges are run very inefficiently.
The result is that most college students get out of college with $25,000 or more in debt.
Then...they have to pay off their loans, so they delay having children and many young people fore go children because they have college debt.
The result: giving money to colleges leads to less children in the world. If you think this is not a problem, you need to study up on your demographics. This is a big, big problem.
Coming after months of scandals involving kickback schemes and conflicts of interest among lenders and college officials, the legislation was expected to shake up the $85-billion student loan industry, with some turmoil already evident... The bill also boosts the maximum Pell grant to the poorest college students from $4,310 a year to $5,400 a year by 2012 and cuts in half the interest rate on federally backed student loans... The bill also sets up a loan-forgiveness program for college graduates who work for 10 years in public service professions. It also would cap annual payments for students at a percentage of their income.Maybe I'll go back to school...