Not all student loans are insured by the Federal Government, at least at the time that the el Rushbo
made that statement. All student loans now must originate with or be insured by (thus subject to) the Federal
government. The way it used to work was banks would issue a college loan, and then sell it to Sallie Mae, in
much the same way that mortgages would be sold to Fannie Mae or Freddie Mac, minus the securitizing. Sallie Mae
qualifying loans would be backed by the Federal Government for the principle, so banks would most often make those
loans, but that wasn't the entire market. There were several banks that would make college loans with higher interest
rates, or fees, early payment schedules or even balloon payments, none of which would be accepted by Sallie Mae,
but were still made, frequently because they had much higher penalty and interest rates attached. These were private
loans that banks would make, and these were the loans Rush was most likely, and correctly, referring to. These loans now
are no longer allowed, as part of the Frank/Dodd financial regulatory reform.
Media matters is not exactly an independant and unbiased research group, despite claims they might make.
I'd take them with the same grain of salt that I'd take anything Limbaugh says.
Is Happiness to be found in a Future Grasped with bloodstained hands?
-Lacus Clyne.R.I.P. Gecko Zero and Aliediz The burdens of this world are yours no more. Such Beauty Ciddy is STILL mah BFF, Ghostrek 2020 Also Nrrdgirl, Tomoe242004,Hertz, Mewn, Ali ... and Vadz
The real American idea is not that every man shall be equal, but that every man shall have the liberty without hindrance to be what God has made him. The office of government is not to confer happiness but to give men the opportunity to work out happiness for themselves.
-Ronald Reagan
Railroadengine is a man.
AdultSwim.com is part of Turner Entertainment Digital which is part of the Turner Sports & Entertainment Digital Network.
