Submitted by David Starr on February 15, 2008 - 12:41pm.
That FFELP loans remain "universally available" does not negate claims that Congress went too far in cutting lender subsidies. The two are not mutually exclusive, since the full weight of the budget cuts and turmoil in the credit markets have not been fully felt. NAF has heard of "lag time," hasn't it? Does NAF suggest that Congress should wait until loans are not universally available--and families are hurt--before it reacts? Also conveniently overlooked by NAF is that while loans may be universally available, loan costs have increased. Getting or finding a loan for some students also is becoming more difficult. So college now costs families more, making college less affordable for them. FFELP loans, if conditions persist, could become less readily available and more expensive for some families to get. And NAF would countenance this is the name of what? Getting the government to take over all federal student loans. A sort of single lender system for federal student loans. Just as the U.S. Passport Office was the only place last summer where you could get a passport renewed.
NAF Crack-Up
That FFELP loans remain "universally available" does not negate claims that Congress went too far in cutting lender subsidies. The two are not mutually exclusive, since the full weight of the budget cuts and turmoil in the credit markets have not been fully felt. NAF has heard of "lag time," hasn't it? Does NAF suggest that Congress should wait until loans are not universally available--and families are hurt--before it reacts? Also conveniently overlooked by NAF is that while loans may be universally available, loan costs have increased. Getting or finding a loan for some students also is becoming more difficult. So college now costs families more, making college less affordable for them. FFELP loans, if conditions persist, could become less readily available and more expensive for some families to get. And NAF would countenance this is the name of what? Getting the government to take over all federal student loans. A sort of single lender system for federal student loans. Just as the U.S. Passport Office was the only place last summer where you could get a passport renewed.