Brother, Can You Spare a MBA? Why You Shouldn't Freak Out Over Student Loans

by Ron Daly

I knew it wouldn't be long before I had to say something folks wouldn't agree with. 

There's a new proposal suggested by the Obama administration that would extend student loans directly from the Government instead of pushing the 97% guaranteed loans through banks and CUs. Of course, I always like to look at things from a Taxpayer's point of view. And how good is it to hear the Government is trying to save $94 Billion over the next ten years? Considering the billions and billions spent on bailouts, it's a welcome relief to hear that they've found one area where they can save some money.

Of course, the proposal is under fire from financial institutions and trade groups, who argue that this will mean less lending (read the CU Journal article here). 

Or will it?