More than 1M fewer students are in college, the lowest numbers in 50 years

Re:More than 1M fewer students are in college, the lowest nu... by lotsofpulp on Thursday January 13, 2022 @02:37PM (#29925652)

I was under the impression that private student loans were also guaranteed by the government, but based on my searches trying to source my information, it seems Obama administration changed this since I went to college.

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Re:More than 1M fewer students are in college, the lowest nu... by learc83 on Thursday January 13, 2022 @02:50PM (#29925852)

Here's what happened. Federal loans have existed for a long time. The Federal government would guarantee loans made by private organizations. However, these were always "Federal loans", the Federal government controlled the interest rate and the maximum amounts available.

The government under the Obama administration changed things so that "Federal" loans instead of being made by private organizations and backed by the government, were directly distributed from the treasury.

However even before this, there were separate Federal and private loans, and the only way to get to $200k (for undergrad) was to get unsubsidized private loans that weren't backed by the government.

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Re:More than 1M fewer students are in college, the lowest nu... by lotsofpulp on Thursday January 13, 2022 @04:12PM (#29926934)

Thanks, I did not know that. What is a subsidized private loan be unsubsidized private loan?

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