History
Administration/Board
Commitment to the Future
Pre-Scripted Email to Key Committee Members
Your Name:
Your Email Address:
Subject:
Save FFELP, Project Choice
Message:
I am opposed to nationalizing student loans as proposed in HR 3221, the Student Aid and Fiscal Responsibility Act (SAFRA) for the following reasons: • Eliminating the FFEL Program will diminish a borrower’s choice among lenders and between Programs (FFELP vs. DL). Over the years competition among lenders and the two Programs has led to beneficial changes such as increased borrower benefits and scholarships, community outreach activities, financial literacy campaigns, better borrower service, and much more. • Eliminating the FFEL Program will put the funding for student loans squarely on the shoulders of the taxpayers and increase the federal debt by a half trillion dollars over 5 years. • The FFEL Program has been serving students and families for more than 40 years. Although the financial markets around the world are struggling, each and every student and family with need for FFEL Program loans has received them. • When schools were given a choice of FFEL Program or Direct Lending, about 70% chose the FFEL Program. Forcing them into Direct Lending and effectively "nationalizing" student lending will be very costly for them and in direct conflict with the free market principles we all cherish. • The estimated savings of 100% Direct lending as proposed by both the Office of Management and Budget (OMB) and Congressional Budget Office (CBO) has continuously decreased by billions of dollars since the initial proposal. The actual savings as proposed in this legislation is unclear and more time and alternative options should be reviewed and discussed before making such a drastic change in the delivery of student loans. Finally, as you know, students and their families often need personal assistance when preparing for college, applying for financial aid, processing their student loans, and repaying their loans. A large federal bureaucracy cannot provide the same level of service or immediate assistance that is needed. Nationalizing student loans is not the answer. Please stand up for my right to choose and keep the administration of student loans local and decentralized. Thank You