Federal Government to Invest in Students, Ousts Banks as Middle Man

The federal government has guaranteed payment of student loans to banks for many years, but that has changed with the stroke of the presidential pen. With this change to the loan system, the federal government will no longer subsidize banks. Rather students will now go directly to the federal government to obtain loans to attend college. President Barack Obama eliminated banks as the middleman, in part, because of the $68 billion savings to American taxpayers. That money will be invested in higher education. However banks are not eliminated completely from the student loan process, they will have an opportunity to grow as a business by servicing the loans.

Obama to Overhaul Education Law & Shake Up No Child Left Behind

In his March 13th weekly address, President Barack Obama announced his plan to overhaul the nation's education law, the Elementary and Secondary Education Act that's well recognized as the No Child Left Behind law of 2002. The shift is away from student profiency by 2014 to holding teachers, principals, schools and states accountable to prepare students to be college and career ready and prepared to fulfill their dreams by 2020. The federal government plans to make an unprecedented investment of billions of dollars toward the success of this education blueprint to make sure students have access to a well rounded education.