

Government to Require In-School Repayment of Federal Student Loans - davidcuddeback
http://www.zencollegelife.com/2010/04/01/government-to-require-in-school-repayment-of-federal-student-loans/

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onlyafly
Contrary to its title, this article does not say that the government will
require in-school repayment of student loans. It only says the gov't will
offer a tax credit if the student opts to do so.

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tpearson
The article says that students will have to start paying the interest on their
loans while in school, and will then get a tax credit for it.

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vannevar
Aside from the inaccuracy of the title, it's also worth noting that the law
referred to in the article was enacted in 2007 under Pres. Bush.

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roboneal
Don't like it - shop around.

Oh Wait. Sorry - .GOV now runs the whole show.

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gojomo
There's nothing preventing other loans -- they just won't have the federal
subsidy.

(If someone's reasons were good for deferring repayment while getting further
education -- and thus they're still a good credit risk at prevailing private
interest rates -- a private bridge/refinancing option will emerge.)

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nkassis
Non subsidized loans are almost impossible to obtain at anything remotely
close to the rate the subsidized loans offer. The best I was offered was 15%.
At that point it makes more sense to just not go to school.

Unsecured debt like student loans has incredible risks and the laws in the US
aren't very strong in favor of forcing people to repay so a lot choose to just
ignore the loans causing them to be even riskier and screwing it for the
people who plays fair. Eliminating the subsidy without looking at everything
else in play here is dangerous.

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gojomo
Except the subsidy isn't going away -- it's just being limited to the feds'
own Department of Education loan program, which will then mea less diversity
in process/administration.

I doubt that will mean loan policies become more stingy; being stingy (even
when required by a clear-eyed cost-benefit analysis) is not what the feds are
good at.

