Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Obama 2010 budget could eliminate FFELP funding
WASHINGTON (5/11/09)—The Department of Education’s Federal Family Education Loans Program (FFELP) could be eliminated if portions of President Obama’s fiscal 2010 budget aimed at reducing entitlement spending are retained. The Obama Administration estimates that opting for private contractor assistance and eliminating the subsidies provided under FFELP could save over $4 billion, annually. The $4 billion surplus created by the policy changes would be used to provide need-based Pell Grants to low-income students. The Credit Union National Association (CUNA) “continues to meet with key members of Congress to explain the importance of the FFELP and the critical role credit unions play in the program," senior legislative representative Phil Drager said. CUNA has previously warned that the elimination of FFELP could jeopardize student lending at more than 1,000 credit unions throughout the country, and may end student lending by credit unions altogether. If adopted, the changes would take place beginning with the 2010-2011 academic year. Lenders that are currently providing loans via the FFELP program will continue to receive subsidies for their outstanding loans and for loans that were originated during the 2009-2010 academic year.


RSS





print
News Now LiveWire
What role are #creditunions playing in @gatesfoundation's 2030 vision of financial services? Read #NewsNow Monday
1 day ago
Consumers fear inaccurate info lingers on credit reports, says @FTC study Read @CUNA's News Now: http://t.co/RzNLMnaROO
1 hour ago
@PCUA has formed a @LinkedIn networking group for former bankers turned #creditunion employees.
1 hour ago
.@politico reports Democrats haven't picked the city yet, but their 2016 convention will be held the week of July 25.
1 hour ago
.@cuna, @DCUC_HQ urge @CFPB to exempt #CUs from changes to Military Lending Act rules cuz CUs aren't part of the targeted problem. NN Monday
3 hours ago