20
Apr

If you’re an American student coming to IE and plan on funding your program with a student loan, you may want to have a read of this article which recently appeared in the Washinton Post.  Below is the link to the artile and a brief clip from the article itself.

Link: http://www.washingtonpost.com/wp-dyn/content/article/2009/04/13/AR2009041302771.html

“With the Obama administration proposing to overhaul the programs a majority of American students use to finance their college education, the student loan industry is fighting back.

The administration is calling for sweeping changes to the decades-old approach of providing federal subsides to private loan companies, arguing that the revamp will save $94 billion that can be redirected to needy borrowers and help even more people go to college. But the industry and its congressional allies are countering that it would add billions to the national debt, put thousands of industry employees out of work and provide shoddy service for borrowers.

The result of the growing confrontation will determine the way students across the country pay for college and, potentially, the fate of dozens of student lending firms…”

Comments

C Todd Lombardo April 26, 2009 - 3:38 pm

Joël,

What’s the status of IE’s entry into the Stafford program? Will the actions the article mentions affect this?

I will swing by your office this week to chat.

–Todd

Joël McConnell April 28, 2009 - 5:16 pm

Todd, please feel free to stop by my office any time to discuss.

Things remain unchanged for now.

Anthony Hess August 4, 2009 - 9:05 pm

After dealing with *an unnamed loan vendor* (as I continue to try to obtain funding for my MBA) I would certainly welcome this change. Unfortunately I think the loan companies are far too influential for this change to happen. Students in general are a good long term loan risk and the inability to escape paying through bankruptcy make student loans a great business to be in. If I were the CEO of one of those companies I would certainly do anything in my power to prevent losing it.

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