Fewer Options Open to Pay for Costs of College

[Aviation Pro]

Welcome to the world of President Insane, ya know, the edukasion preznet. Unfortunately, President Insane can't do 'rithmetic very well so I'll do it for the little motherfucker: $60 billion in loans equals 5 months of flushing money down the toilet of war. Pretty simple, isn't it, you waste of the dribble that came out of your wimpy daddy's nutsack.

Anyone who votes 'Lic should be declared stupid and be forced to wear a scarlet 'S'.

Link here: http://www.nytimes.com/2008/04/12/business/12loan.html?_r=1&ei=5088&en=b12d3dca3026299d&ex=1365739200&partner=rssnyt&emc=rss&pagewanted=print&oref=slogin

By JONATHAN D. GLATER
Parents will have to navigate unfamiliar and difficult terrain when it comes time to pay for college this year, with student loan companies in turmoil and banks tightening their standards and raising rates on other types of borrowing.

Lawmakers and the administration are trying to head off any crisis by making sure that “lenders of last resort” stand ready to take the place of companies that have left the federal loan program. And a growing number of colleges have applied to participate in the federal direct loan program, in which students borrow from the government.

But families often use a combination of resources to pay for college, drawing on savings, federal loans, bank loans and home loans to plug the gap between college costs and financial aid.

Even if the government wards off problems in the credit markets and federal student loans are easily accessible, other sources of financing will become less accessible as consumers find themselves stretched thin and lenders get more choosy.

Turbulence in lending has complicated the efforts of people like Dawn R. Beaton of Mill Valley, Calif., to pay for her daughters’ education. A single mother earning less than $50,000 a year, she already has run into difficulty taking out a federal parent loan for her oldest daughter, Nicole, to attend a nearby community college. Her original lender pulled out of the market, and she is still waiting, months later, to hear from a replacement lender on that $5,000 request. She anticipates having to borrow about $10,000 to send her middle daughter to a private college in Ohio later this year.

“When I go to bed at night, I worry about it,” said Ms. Beaton, who is a financial manager for a vineyard.

“If you don’t have the money, there you are, in a serious, ulcer state. You feel inadequate.”

*snip*

Last year, students and their parents borrowed nearly $60 billion in federally guaranteed loans, a figure that has grown more than 6 percent annually over the last five years after taking into account inflation. In recent years, the growth rate has declined but may pick up as the economy slows and as other borrowing options fade.

[mac2]

1. Only the elite shall be educated on our backs.

Will they support teacher training colleges, books, and schools?

Public education is one of our strongest institutions in our democracy. Some even better than the private ones (low pay for teachers, not as well trained, facilities less, etc.). They have a war (propaganda, shootings, tax cuts, loan cuts, etc.)against them.

If they want to educate their children in private schools they should pay extra. Many religious ones should receive no public funds for busing, computers, public loans and scholorships, etc.

Reagan first attacked the public system when he was a product of it. Guess he had a bad memory? The politicians who give funds to private schools also are products of our public systems...either college or 1-12 grades...some both. They deny future generations of the democratic process. They are self interested and one might say even treasonous since this violates our Constitution (the religious colleges and schools).

Bush is one of the few in the administration who attended all private schools. Look how well educated he is. Even Cheney went to the public schools and University of Montana, Wisconsin, etc.

[Rosemary2205]

2. Bush problem isn't his education

it's more likely a combo of genetic limitations, the result of being raised in that house, and the fact he spent decades pickling his gourd.

[mac2]

3. He would never have made it through the public system.

Because of who he was...he did.

[flashl]

4. Are familiar (subcrime) terms used here?

Exit of College Lenders Sets Off Scramble To Fill Breach

Most lenders rely on the securitization of debt to generate enough cash to issue student loans. This process turns ordinary loans into securities, just like stocks, so they can be bought and traded on the debt markets. But lenders have been unable to securitize any loan made after Oct. 1, when a cut in federal subsidies to lenders went into effect.

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(MUST READ) College Loans by States Face Fresh Scrutiny
DES MOINES — When Iowa set up a corporation to make student loans more available, it hoped to expand access to college. Now state officials are investigating whether the corporation’s aggressive practices to get business help explain why Iowa’s college graduates have the nation’s second-highest debt burden per student.

The nonprofit Iowa Student Loan Liquidity Corporation, created in 1979, has become the dominant student lender in the state, with 400 employees and $3.3 billion in outstanding loans. Its officials, in recently disclosed e-mail messages, emphasized “continued ‘hypergrowth’” and benefits of “an aggressive, offensive strategy to bring in new loan volume.”

Some Iowa lawmakers, after hearings this fall, threatened to strip it of its authority to issue tax-free bonds, raising its costs, and the attorney general is investigating its business practices and governance.

It is just one of several state-created lenders that have come under scrutiny.