Where Credit is Due
Feb 22, 2010 9:15 AM ET
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Student Hazing by Debt
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The Obama administration is trying to bring relief to Americans with the Student Aid Fiscal Responsibility Act. If passed, this legislation will mandate that all universities and colleges provide low cost loans directly from the Federal Government. The current system for lending money functions like this: Government to Banks to University/College. The new bill will cut out the middle man (banks) and lend directly to parents and students.
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College Credit
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Lenders had a swell time these past few decades swarming students on college campuses or on Spring Break in beach resorts hawking credit. The plan was for easy profit for big lenders knowing that students would treat credit cards like ATM cards and parents would (more often than not) bail them out of debt. Well, those days are officially over!
