USC Financial Direction Ed Miller says students will have an easier time with the new loans.
By: Neel Dhere
Posted Mar. 15, 2010 12:23 AM
The newly signed federal health care bill has made it easier for the federal government to make direct loans to students.
The measure included a provision that removed federal guarantees for student loans. In the future all student loans must go through the federal government, not private or state loan agencies. The government will be able to save the taxpayers $61 billion over the next 10 years.
The University of South Carolina switched it's student loan applications from the non-profit South Carolina Student Loan corporation to federal direct lending in December in anticipation of the change.
USC Financial Director Ed Miller says the move to direct lending should be simple and even easier than past programs with private lenders.
"It will be very consistent and very streamlined and it will be dependable," Miller says. "From Day 1, students will know where everything stands and with whom their going to be working."
Miller says despite the move, there will be no change in the availability of student loans.