Stringer Financial aid is often the deciding factor in whether or not a person can attend college.
Financial aid can take the form of loans, grants, scholarships or work study programs.
The government, universities and private lenders such as banks all provide these services. This drop in interest will save students hundreds of dollars but many private lenders fear that it will cut into their profit margin to the point that they may stop providing loans to students. Smithson said that a school like SIUE that provides direct government loans would not be as badly hurt by this as a school like St. Louis University whose students receive the majority of their loans through banks. A revision of the original plan has already passed through the House of Representatives and will go before the senate this week. If approved the new plan would fix all interest rates for direct and private loans and private lenders would be given money by the government for continuing to provide their services.