Student Loans Moving To Government?

Sallie Mae One Of The Top Lenders Of Student Loans.

It depends on which side your own to decide if this could be a good thing or bad.  A student loan bill  is possibly being passed by Congress.  While private Lenders like Sallie Mae and Large Financial Institutions:  JPMorgan Chase, Bank of America and Citigroup combined could lose up to $70 billion-a-year  in fees from student loans. 

The new student loan bill would no longer pay fees to financial institutions who act as go betweens .   Instead the fees could be pumped into larger Pell grants for low to middle income students.  Which just might save on the need for further student loans.

Private lenders are fighting  against the student loan bill, their fight is that  it would cost thousands of jobs and be put into the hands of the government unnecessarily

On the other hand  a quote for Msnbc:

 ” The bill would see $61 billion in savings over 10 years from the switch to direct government lending. It would pay for Pell Grants and provide more than $4 billion to community colleges and historically black colleges. It also would direct about $19 billion to reducing the deficit and offsetting expenses in the health care legislation.”

Also the new student loan bill would no longer take the 15 percent of a graduates monthly income.  The new rate would be lowered 5 percent.  Graduates would not be required to pay more than 10 percent of their monthly income when repaying student loans.