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Obama Student Loan Plan benefits government, not students
College planning expert Ron Caruthers points out that Obama's Student Loan Plan has a huge upside for the government, but very little benefits for students.
By: Bethany Cummins
"With Obama's loan consolidation plan, the government is merely extending what they did in 2010 when they took over all Direct student loans and essentially forced everyone else out of business,"Ron explains. "Now, they're trying to get at the loans that students have taken with existing lenders, and trying to get them to refinance in essence, so the government can use the interest for other programs. In return, the government is offering a very small discount on a student's interest rate that will save the average student less than $10 per month."
Back in 2010, the Obama Administration forced families to borrow directly from the Federal Government instead of private government-backed lenders like they had in the past. This new revenue was then listed under the health care bill to help the President pass it.
"Hence, the President quietly seized an entire industry," Ron continues. "And now, the government is looking to expand their control even more."
While the rhetoric may sound noble, the actual savings are miniscule to students. For a student that owes $20,000 in student loans, the savings on the 1/2 percent interest break amount to $8.33 a month.
"What's really sad is that most families could avoid this enormous student debt in the first place if they just took the time to understand how the financial aid system works. That's what the President should really be encouraging,"
In as little as 5 minutes, Ron Caruthers can explain to any audience how they can save themselves thousands of dollars each year on the cost of college and avoid the student loan nightmare in the first place.
He is a fast-paced lively interview subject, and can talk on all areas of the college admissions and financial aid process. He has been quoted in USA Today and the Wall Street Journal. His most recent blog video explains the 9 top college admissions myths and can be found at http://www.GetFreeFinancialAidForCollege.com
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Ducerus is the nation's only total college solution to help families through the process every step of the way. From career planning to financial aid, Ducerus is the solution. Learn more at http://www.ducerus.com
Page Updated Last on: Oct 28, 2011