US Student Loan Process Improves with Obama’s Intervention

Barack Obama, calling himself the ally of US students, signed today a new law to free up more money for higher education to end the role of banks as “intermediaries” in the college lending process. The changes in the college loan business come as part of the final piece of the health reform law, which Obama introduced in a signing ceremony at a community college in suburban Virginia, DC

Speaking to a crowd of students, Obama credited the Democrats in Congress to counter “a sweetheart deal on federal law,” which guarantees billions of dollars in profits from banks to offer loans in college.

Money that should have been spent advancing the educational interests of students “instead was spent padding student lenders’ profits,” the president said. “It probably won’t surprise you to learn that the banks hired an army of lobbyists” to fight it.

“But I didn’t stand with the banks and the special interests,” Obama said of himself and the Democratic members of Congress who joined him at Northern Virginia Community College for the event. “We stood with you. We stood with America’s students.”

It’s a message that the president has unspooled in various public appearances since the passage of health legislation history last week as he undertakes a tour that is both victory lap and sales pitch.

“We can not afford to waste billions of dollars in gifts to banks, when American. competitiveness depends on the fate of their students, “Obama said.
The White House believes that changes in the lending program will be generate $ 68 billion in savings over the next 10 years, money that can be used to help expand the Pell Grant program.

The new law also set a ceiling on the payments of annual loan college graduates, so they only pay 10% of their income

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Posted by Starwin on 30th March, 2010

US Student Loan Process Improves with Obama’s Intervention

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