So, Bush is still making some moves on the economic problems before he leaves
office at the end of the year. Here is a piece of the press release from the
department of educations website:
A Department of Education Press Release:
The Administration intends to provide liquidity support to one or
more conforming Asset-Backed Commercial Paper (ABCP) conduits. These conduits will purchase FFELP
loans, providing longer-term stability to the guaranteed student loan
marketplace. The Department intends to make all fully disbursed,
non-consolidation FFELP loans awarded between October 1, 2003 and July 1, 2009
eligible for this program. An eligible lender trustee creates a pool called a
conduit, to which other lenders transfer ownership of their student loans.
This conduit issues commercial paper to sell, backed by the loans in the pool
(Asset-Backed Commercial Paper). After private investors purchase the
commercial paper (CP), student lenders would be paid out of the amounts
received from these investors. The Department of Education will provide
liquidity to the facility by entering into forward purchase commitments with
these eligible lender trustees, whereby the Department promises to purchase,
at a date in the future, eligible student loans at a prearranged price if the
commercial paper that has been issued by the conduit cannot be re-issued or
“rolled” at maturity and the conduit does not have sufficient cash to repay
commercial paper investors.
Understand everything??? This was just a press release, now just
imagine the 1000+ pages of the Higher Education Re authorization Act is written.
This is the book you must read if you would like to know EVERYTHING about the
financial aid system. FUN! I know, I read it.
Basically what the Department of Education is saying, is that, they
figured Re authorization a way to increase the capital that banks that fund the federal loans
have, in turn making it possible to still receive federal loans. This is great
news for anyone that will be taking out a PLUS Loan, Stafford Loan, or Perkins
Loan this coming year. But, if your in need of a private loan, your still in
trouble because that problem has not been solved yet.
If you think you are in need of a private student loan, and are not
sure what will be available in the coming months/years, then I would seriously
suggest for you to visit my website and sign-up for a FREE workshop! There are
so many different avenues to pay for college, and in most families situations,
private Student Loans are the worst way to pay! Do your research!!!!!!
Have a great day!