When I (this is Daria) went to college, college was MUCH more affordable than it is today. But I had to attend my second choice college because my number one choice was too expensive.

See, back in those days, you went to a school your parents could afford because there wasn't easy access to student loans.

On the face of it, the explosion of student loans seems like a good thing-more people can get loans to pay for college. But here's the rub...

Since the advent of aggressive student loan programs, the cost of a college education has increased EVERY year. And during most years, it has increased at a rate higher than inflation.

Why? Because many institutions figured students and their parents can and will borrow BIG bucks to pay for college, so we can up the tuition!

As a result, an alarming percentage of college students graduated owing tens of thousands of dollars! The average student graduates with almost $23,000 in student loan debt!

New Student Loan Rules

President Obama promised early in his presidency to help make high education more affordable. Yesterday, The Student Aid and Fiscal Responsibility Act bill passed the House.

The bill (which now moves on to the Senate) will provide more free money for college students from lower-income families and an overhaul of certain student loans. It would eliminate the Federal Family Education Loan Program (FFELP) and shift private student loans to a government-run and taxpayer-financed system under the Federal Direct Lending Program (FDLP).

New federally-backed loans would now come through the government's direct loan program.

So is the new legislation good news for student and parents? NOT EVEN CLOSE!

We don't believe the House-passed bill will help make college more affordable because it:

Takes the competition out of the student loan programs. Students would be forced to take the "public option" for a student loan, eliminating choices available from competing lender programs

Does nothing to slow rising tuition and other college costs.

Means we, as, taxpayers will bear the brunt of bankruptcies from student loan defaults.

Does little, or nothing, to help make loans cheaper, thereby enabling students to actually pay them off!

The Bottom Line

We are not in favor of yet another government takeover, especially with something as important as our kids' education.

We also strongly believe that competition is FAR better than a severe limiting of the loan options, and that eliminating that competition will only increase the inefficiencies in the student loan system.
Washington, don't make funding an already expensive college education even more expensive!

We've said it before and we'll say it again...don't wait for the government to sort out this mess.

Create your own plan for making college affordable with our help:

• Best Ways to Save for College
• Secrets to Qualifying for Financial Aid
• Four Places to Find Money for College