| Loans are required by one and all to compensate for | | | | SAFRA (student aid and fiscal responsibility act) that |
| their shortage of funds and help them tide over a | | | | has already been passed by the House is also likely |
| financial crisis. It is the same with the education | | | | to be passed by the Senate. Once this comes into |
| fraternity too. There are many brilliant academicians | | | | effect it will be the end of the FFEL (federal family |
| whose families just do not have the wherewithal to | | | | education loan) that has till now been passing on |
| help them to pursue with their studies. It is the | | | | loans to students. In a strange turn of events that |
| student loan which helps these needy students to | | | | was more or less expected, a number of the private |
| get hold of money that is required for undertaking | | | | loan companies have grouped together and have |
| their education. This particular type of loan is provided | | | | formed PSC (project student choice) to campaign |
| at a low interest rate and is generally required to be | | | | against SAFRA. This group also has their presence in |
| paid back completely within a certain period of time | | | | Facebook, the biggest social network. |
| after the student has completed his or her education. | | | | This group also has their presence in the biggest |
| These loans are generally provided by both the | | | | social network, Facebook. Facebook, the biggest |
| government and also by private financial institutions. | | | | social network, is where this group also has its |
| It has been observed that the amount of student | | | | presence. This group is planning to get hold of |
| loans disbursed by the private sector is increasing | | | | student support by misguiding them with wrong |
| over that being disbursed by the government at a | | | | information. Even the largest of student loan |
| rapid pace. According to statistics this growth of the | | | | companies, Ed America and Chase have mentioned |
| loans provided by the private sector is so much that | | | | that they cannot see why providing loans to |
| if it keeps on continuing at the current pace for a | | | | students under the FFEL should be discontinued. Ed |
| decade or so, it will surpass the amount of loans | | | | America and Chase, the biggest loan companies |
| provided by the government. | | | | cannot see why providing loans to students under |
| It goes without saying that the fees that are being | | | | the FFEL should be discontinued and they have put |
| charged by a number of private lenders can increase | | | | this on record. As of date the battle still continues, |
| the loan costs significantly. It is also true that those | | | | but this does not mean that private student loans |
| private lenders, who do not charge fees, make up | | | | are dead. |
| for the same by charging higher interest fees. | | | | |