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House Student Loan Cuts Flunk Out |
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From PR Newswire: Government and Policy: Just over a year after Congress passed the largest cut in student loans in history, the House Education and Labor Committee is expected to approve a new set of regressive taxes and cuts on student loans that will leave borrowers with fewer choices and higher interest rates on their student loans. The new budget cuts would impose regressive, across-the-board cuts of between 23% and 35% on the amount that lenders may earn on loans --regardless of the lender's size. "These new taxes and across-the-board cuts will destroy competition from the smaller lenders that have been driving costs down for borrowers," said Chairman and CEO Dr. Henry B. Howard. The federal student loan program is currently dominated by a handful of large, mega-lenders. According to the U.S. Department of Education, Sallie Mae holds 35% of the $325 billion in outstanding federal student loans, and the top 10 lenders hold over 70% of those loans. Howard said, "Americans want more choice and competition, and we can ensure this by focusing the larger cuts on the lenders that currently dominate the program." U.S. Education Finance Group, headquarters in Miami, FL, is an industry leader in the Federal Family Education Loan (FFEL) Program and has helped hundreds of thousands of students and their families finance the cost of higher education. With one of the most diverse workforces and management teams in the student loan industry, USEFG's commitment to diversity and equal opportunity has helped make it a leader in providing education financing for a wide range of borrowers.
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