Changing the student loan program from private industry to a government-run program would limit student choice, NAFCU President/CEO Fred Becker wrote members of a House panel.
"We have concerns that the legislation's move to an all direct-lending program could create new challenges for credit union members to get the aid that they need to attend schools in the United States. As member-owners of the credit union, students seeking assistance often get a personalized service tailored to help meet their needs at a financial institution with which they have a relationship," Becker wrote members of the House Education and Labor Committee.
Tomorrow, the panel is scheduled to debate and mark-up a measure that would eliminate the Federal Family Education Loan Program in favor of the government providing loans directly. The administration contends the change could save taxpayers $85 billion over 10 years.
House Education and Labor Committee Chairman George Miller (D-Calif.) has endorsed the administration's proposal.
Earlier this year, CUNA-which also opposes changing the program-estimated that more than 1,000 credit unions provide these loans.
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