<p>Apparently there is a provision in the new healthcare law that governs federally guaranteed student loans. I would appreciate any explanation on what has changed. I would prefer to keep any discussion focused on the what has changed, the mechanics and how it will impact students considering loans, not on the politics which could be discussed in another forum.</p>
<p>All that has changed is that more Stafford loans (all eventually - don’t know how immediate it is) will become direct loans administered by the schools instead of loans from private banks. There is no change to amounts or interest rates.</p>
<p>Many are already like this. My daughter’s school is a direct lender, My son’s is not. We have much preferred the direct lender method. Simpler and the loans don’t keep being sold to someone else the way my son’s have been.</p>
<p>swimcatsmom: Thanks. So from a student perspective, nothing has really changed? From what I understand from your note, if the school is not a direct lender, they would need to become one eventually and the loan processes/documents may change a little. Other than that it does not directly impact the student or the parent at all. Is that a correct assumption? Thanks again for your knowledge and perspectives on this subject and your willingness to share it.</p>
<p>Nothing changes at all until it survives all court challenges that apply to that part of the bill, mostly those over the process used to pass the bill. Could be a few years before anything in the bill becomes law, and once the current folks are voted out of Congress, the new Congress could force the President to sign a repeal by refusing to pass a budget until he cooperates. Meanwhile, there are pushes for a Constitutional Convention, etc.</p>
<p>As for the specific changes in the loan program, essentially what happened is that the government plans to give itself a near-monopoly on student loans in order to generate more revenue for spending programs.</p>
<p>Bottom line: Don’t worry about it. Just wait and see.</p>