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Has anyone else been affected by the latest student loan legislation (it was part of the health care bill)?

This is pretty shortly after the bill passed, so I wouldn't be shocked if we're part of the few early ones seeing this. I was just curious if we weren't alone...and I kind of need a little vent :/

Basically, the government doesn't think my husband should be going to school during the summer term, and therefore is not offering student loans.

Last summer, that wouldn't have been a big deal because we could still get fairly low-interest student loans through any bank. But now (thanks to recent legislation) the government doesn't allow banks to offer student loans, so if we decide to get any loan at all, it will have to be a high-interest-rate signature loan.

Sigh, I'm so glad this is his last semester before graduating.

Answer Question

Asked by Anonymous at 3:30 PM on May. 8, 2010 in Politics & Current Events

Answers (6)
  • That is ridiculous!!!! I am going back to school in the fall... I want to take classes in teh summer more than likely, at least part time. I'll have a pell grant... will that be affected?

    Answer by missbreezy214 at 3:36 PM on May. 8, 2010

  • I hadn't heard about that, but my husband is going fulltime to become an RN through our local community college. He uses the PELL grant and the MAP grant for his financial aide and as long as he's going full time during the Fall AND Spring, he gets a certain amount of money for the summer (he has to take at least 6 credit hours in the summer to qualify for that money as well). He's been able to do it the past two summer' I'm not sure that this will affect the future...but for right now i've not heard of anything.
    I have heard off and on that they may be getting rid of the MAP grant in the spring and just offering it in the Fall....I think however that is dependent upon which state you live in. We live in Illinois.

    Answer by CAGirl4 at 3:42 PM on May. 8, 2010

  • OP here - no I think hubby is still going to be able to get a little grant.

    Answer by Anonymous at 3:52 PM on May. 8, 2010

  • From what I've been reading, those changes do not go into effect until July 1 - meaning anyone applying for the early summer term is fine. It's those who are taking off May-June and only going back in July that might have a problem.

    Answer by NotPanicking at 4:53 PM on May. 8, 2010

  • You can still get loans for the summer semester (Sallie Mae won't leave me alone about it). And it was my understanding that you can still get PRIVATE student loans through banks. However, federal loans will no longer be going through banks since they have stupid fees and all of them will now be direct from the federal government. But I could be wrong about the second part since I have never had a private loan.

    Answer by purpleducky at 8:26 AM on May. 9, 2010

  • LOL A Private student loan is a signature loan basically. They don't offer you a low rate and they can't call it a student loan. If you can get a pell grant consider yourself lucky. While the total amount per student is to rise slightly the total amout set for these grants is less so they can use some to pay for this health care debacle they have thrust upon us.
    My son has one private loan and so far 2 stafford loans (no grants)which are real government loans. We got a notice that the bank they were serviced by is not longer who will be servicing it. Some company called Great Lakes (government) has taken it over as of the 5th of May. They tried to make us think they were cutting out the middle man to save money but that was just another lie. Instead they are just paying a government company (comes out of our taxes) to do it.
    My son checked with his university and they said his stafford was still in effect though.

    Answer by itsmesteph11 at 8:44 AM on May. 9, 2010

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