09-10-2019, 08:33 AM
So, the FDSLP has existed since 1992 and was piloted under G.H.W. Bush. They have been around before Obama was in office. Following the HCERA another type of federal loan was stopped, and those were the guaranteed loans, or those with private sector underwriters. But from 1992 to 2010ish, both types existed. Direct loans have never been credit based (as they are actually intended to help a student who lacks any credit help build up their credit) other than the PLUS loans, which are credit based but are for parents and graduate students.
What we see, now, is that there is a growing volume of private lenders working directly with parents and students. I've seen the proportion of private loans to direct loans increasing over the years (though what this year looked like, I'm not sure, as I don't handle the accounting for loans directly any longer) and these numbers move based upon interest rates and what is needed. Also, there is a cap on the FDSLP monies a student can receive that is much lower than that of PLUS or private loans. A student could not pay for their entire semester on those loans alone, and that's here at the least expensive four-year in Virginia.
This isn't really much to talk about, to be quite honest. Administrations on both sides can be blamed for the problem of the FDSLP and while Obama was responsible for ending the privately underwritten federal student loans, there is still a private loan industry that is absolutely thriving right now and credit based loans are carrying the bulk of the load from what I can see.
What we see, now, is that there is a growing volume of private lenders working directly with parents and students. I've seen the proportion of private loans to direct loans increasing over the years (though what this year looked like, I'm not sure, as I don't handle the accounting for loans directly any longer) and these numbers move based upon interest rates and what is needed. Also, there is a cap on the FDSLP monies a student can receive that is much lower than that of PLUS or private loans. A student could not pay for their entire semester on those loans alone, and that's here at the least expensive four-year in Virginia.
This isn't really much to talk about, to be quite honest. Administrations on both sides can be blamed for the problem of the FDSLP and while Obama was responsible for ending the privately underwritten federal student loans, there is still a private loan industry that is absolutely thriving right now and credit based loans are carrying the bulk of the load from what I can see.
"A great democracy has got to be progressive, or it will soon cease to be either great or a democracy..." - TR
"The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little." - FDR
"The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little." - FDR
