Will The New Health Care Bill Affect My Student Loans?

As we find out that there’s more and more to this gigantic health care reform bill the Democrats pushed through, one surprising things is all the so called student loan reform amendments that are buried into this bill. Even these are causing quite a bit of confusion among the experts and many people simply do not understand them. Here’s a rundown of the provisions in the Health care reform bill and how the health care bill will affect student loans.

First off, with this new health care bill, the Federal Government will now take complete control of the Student loan program. All those brokers who were set up to handle students looking for loans. They don’t exist any longer. Of course, the Federal government has increased the number of people they have working on loans and they can not tell us how they’re going to handle the increase workload that comes from this. Many are fearing the student loan program will suffer the same fate as the Cash for Clunker program. Remember that one? Where they not only ran out of money once, but twice and then prematurely shut down the program when they ran out of money the second time!

This is one reason that students should try to do everything in their powers to keep from relying solely on Federal student loans. Extending your college stay while working your way through college or private student loans are all preferable over being tied to a federal student loan since it’s more than likely going to be a three ring circus once they take full control of the program.

While this will probably not affect the amount of money you can get through a student loan, many people who give student advice think is that it’s going to affect the quality of service when you start repaying the loan. There’s simply not going to be enough people to help you if you have a problem.

This bill does not just affect the students and lenders. It also affects the Colleges and Universities in a huge way. It’s now their responsibility to originate the loans. This was once done by the banks but since they’re out of the way, Uncle Sam wants the schools to do it. This will put an increase strain on the financial departments of the Colleges. They’ve never originate loans and you can expect a lot of mistakes when you go apply, or repay, your student loans.

Tags: collegeeducation financehealth care billhow the health care bill will affect student loansstudent adviceStudent Loans