Student Loan News, Updates and Blog Posts

“The 35 guarantee agencies that work with lenders, borrowers, and the U.S. Education Department to administer bank-based student loans have evolved into inefficient middlemen that waste taxpayer money, the New America Foundation said today in a policy report released just as Congress prepares to debate a student-lending plan that could eliminate the need for guarantee agencies,” The Chronicle of Higher Education reports. “The agencies, intended to insure banks against default losses and thereby encourage them to offer better rates on student loans, have become largely administrative bodies, according to the nonprofit group’s report.”