From the Los Angeles Times, 2/26/09
FULL STORY HERE
President Obama's proposal for direct government funding of student loans -- cutting out private industry -- sent shares of Sallie Mae, Student Loan Corp., Nelnet Inc. and other college loan companies plunging Thursday.
For-profit vocational schools, such as Corinthian Colleges Inc., DeVry Inc. and ITT Educational Services Inc., also saw their stock prices drop. Their students often rely on government-backed loans from private lenders.
Currently, students needing funds typically borrow money directly from the government or from banks and other lenders such as Sallie Mae that issue loans subsidized or backed by the government.
Obama's budget proposal for the 2010 fiscal year, which begins Oct. 1, calls for cutting out the middlemen by eliminating subsidies to lenders. The administration believes that the move to the Department of Education's Direct Loan Program could save more than $4 billion a year.
Some can see this is a socialist move, giving more power to the government to control the opportunity to educate oneself and taking power away from the private sector and their respective managements, or some can see this as the first of hopefully more socially-inclined policies to reform the government toward investing its resources more into public services which will benefit the American majority middle, working and poorer class people.
Either way, people are going to have opinions about this, especially the high/elite class of society...
I await the reforms, Obama =)
-gs1r-
LISTENING TO:Big Takeover
by: Bad Brains
Bad Brains
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