Rescue Part II: Feds Announce More Help for Student Loans
If you've been angry about this whole $700 billion bailout and how it doesn't really help you much personally, maybe this little bit of news may make you feel better.
Treasury Secretary Henry M. Paulson, Jr. and Department of Education Secretary Margaret Spellings announced today that the Administration is going to take a number of steps to support the student loan market.
As we all know, the credit crunch isn't just affecting mortgages, auto loans and credit cards. It's also hurt student loans.
Here's part of the text of what Paulson and Spellings released, explaining that they recognize that education is the foundation of a strong American workforce:
Earlier this week, President George W. Bush signed H.R. 6889, the extension of the Ensuring Continued Access to Student Loans Act. We appreciate Congress providing the Department of Education, in coordination with the Treasury Department and the Office of Management and Budget, renewed temporary powers to use federal funds to ensure students and families continue to have access to student loans
The loan purchase and participation interest programs implemented over the last few months have helped ensure that Federal student loans were available to students enrolling in postsecondary institutions for the 2008-2009 school year, and Federal student lending is exceeding last year's pace.
Our financing program has supported just over 40 percent of the Federal Family Education Loan Program (FFELP) loans that have been disbursed this year. Over 800 lenders have enrolled in our loan purchase program. Almost $51 billion of federally guaranteed loans have been originated for the current school year, up from approximately $45 billion for the same period last year.
Over the next few months, schools and lenders will be making decisions for the 2009-2010 school year. Using our newly extended authorities, the Administration is moving aggressively to support the continued availability of funding for federal student loans in the next school year with the goal of restoring the government guaranteed student loan market to normal operations. We are working on an expedited basis and will make further announcements in the coming weeks.
And on that somewhat positive note, I wish you all a good weekend.
Categories: College/Financial aid, Economy, Loans
