Below is part of a news story I grabbed from Yahoo news today. If the switch to Direct Lending passes, the corporation I work for will close it's doors and we'll all be unemployed.
"The House measure also backs Obama's plans to essentially eliminate the federal guaranteed student loan program, replacing such loans with direct loans made by the Department of Education. The proposal would be advanced on a fast-track under the plan, which the Congressional Budget Office estimates would save $92 billion over 10 years that could be used to fund other aid to students."
The savings of $92 billion is highly suspect. If the fed takes over higher education student loans do you really believe it will save money? I think not. Just this morning a local radio station played an ad for higher education student loans from the U.S. Dept. of Education. The budget plan hasn't even been passed yet and they're spending money on ads. I've heard that the biggest lender of student loans (Sallie Mae) has already been chosen to administer these direct lending loans and they're not doing it out of the goodness of their heart either.
I voted for the man and now I feel I was played for a fool. It's time to polish up the resume. Obama schnobama.