| On March 30, President Barack Obama went down to | | | | last few years though, this plan backfired. The banks |
| Northern Virginia Community College to sign what | | | | began to feel entitled to charge much higher interest |
| many in the media were calling his "health bill." True, a | | | | rates and pocket the difference. This resulted in |
| giant portion of the bill revolved around the | | | | interest rates starting to escalate to as much as 19%, |
| controversial insurance reform, but that wasn't all this | | | | and coupled with the current economic recession, the |
| monumental piece of legislation was about. It also had | | | | number of defaults escalated accordingly. |
| to do with education and both traditional and online | | | | One key aspect of the new Obama plan is it cuts out |
| college grants and financial aid possibilities will come | | | | the banking middle men, again returning the student |
| into play. | | | | loan system completely back into the Board of |
| If anyone paid attention, the actual title of the bill | | | | Education's hands. Obama expects that not only will |
| Obama signed was "The Health Care and Education | | | | there be less defaults because the interest rates will |
| Reconciliation Act". The second half of that title was | | | | be lowered, but the profits generated from these loans |
| grossly ignored by most media pundits, but if it goes | | | | will be plowed back into increasing the Pell Grant and |
| through as planned it will have an incredibly positive | | | | related financial aid programs. |
| impact on the future of education as a whole, including | | | | Another aspect of this program is targeting a large |
| online colleges. | | | | portion of money towards community and online |
| Admittedly, a considerable amount of the education | | | | colleges. The reasoning for this is that these forms of |
| sections of the bill have to do with elementary and | | | | schooling simply cost considerably less than the bigger |
| secondary schools. At the same time, who can deny | | | | schools and have smaller war chests than the |
| that if this part of the education system isn't | | | | Harvard's and MIT's of the world. If the community |
| overhauled, the prospects of having primed students | | | | college has an online division, that's even better. What |
| for graduate and post-graduate education becomes | | | | really matters is the school is an accredited Title IV |
| slim, if not none. | | | | institution. |
| The key bit of legislation though revolves around | | | | "For a long time, our student loan system has worked |
| student loans. Back in the day, when students applied | | | | for banks and financial institutions", Obama said that |
| for them, they got the money straight from the federal | | | | day. "Today, we're finally making our student loan |
| government. When the legislature that initially created | | | | system work for students and our families. But we're |
| student law systems was signed by then President | | | | also doing something more. From the moment I was |
| Lyndon Johnson in 1965, students got their loans | | | | sworn into office, I've spoken about the urgent need |
| directly from the federal government, which also | | | | for us to lay a new foundation for our economy and |
| administered them. | | | | for our future...we can rightly say the foundation on |
| Over time, the government felt it could cut costs by | | | | which America's future will be built is stronger than it |
| having banks administer the money for them. Over the | | | | was one year ago. |