March 5, 2009
2010 Presidential Budget Blueprint
As you may be aware, the Obama administration recently released the president's FY 2010 budget proposal, which includes recommendations related to federal student lending. It's important to note that typically, the president's proposal is a blueprint that represents a starting point for discussion and consideration.
The president’s statement endorsing the movement of all federal student lending toward the direct lending program would significantly change the landscape of the vast majority of student aid at a time when Federal Family Education Loan Program (FFELP) participants have already begun in-depth discussion and analysis of ways to enhance the program’s long-term viability. Additionally, the president’s proposal fails to explain how the value-added services provided through the FFELP – services that address critical needs including college access, default prevention and financial literacy - would be made available to students, parents and schools.
As a partner in the Oklahoma financial aid community, we'd like to share some other key points with you:
- Despite the president’s budget proposal and the current economic downturn, we see the budgetary review process as a unique opportunity to demonstrate the inherent value of the wide spectrum of support services provided by the FFELP community of lenders, guarantors and schools.
- We’re confident the federal government will ensure funding will be available for student loans. Not a single student in the nation has been unable to get a federal student loan due to the credit crisis.
- Inclusion of student loans in the president’s blueprint will create more opportunities for collaborative discussion and consideration of all aspects of federal student lending, which is a positive development.
OGSLP will keep you informed as discussions continue. If you have questions, please contact Rick Edington, Director for School/Lender Services, Default Prevention & Outreach, at 405.234.4333 or firstname.lastname@example.org.