Summary
Will getting a student loan be like dealing with the DMV division of motor vehicles? What will the complete lack of competition mean to the rates today & in the future? What about quality service, the govt. cant handle the volume today, what will it be like when they are the only game in town?
Analysis
With what the govt. is proposing all of the student loan companies of today will no longer afford to provide student loans, thus in effect the govt. is pushing them out and ending an industry. Also ACS the current servicer used by the govt. cant handle what they have today, in no way will they be able to service the masses. The quality of service one can expect should this happen will be horrendous. Also, with the govt being the only game in town their will be no competition, the interest rates on student loans will be completely at the whim of our govt. This may look good on paper with the proported savings of the subsidies, but in practice this will sure prove to be disasterous. With student loan issues being the single greatest reason why people don't go to school I can only imagine it will only get worse for the student and thus ultimately play against Mr. Obama's stated goal of everyone attending college.
