Student Loan Consolidation: New Regulations Could have Negative Impact

Student_loan_consolidationIf some in Washington have their way, many students would no longer be able to receive federal funding for their student loans or consolidation of their student loans. New regulations, offered by the Department of Education, aims to cut students in certain fields from the trough.

The focus of the legislation is on a students expected debt-to-income ratio upon graduation from school. Using this as criteria could potentially handicap some students from pursuing any low paying or public service jobs.

In effect, such regulations could serve to direct students with financial needs away from their intended careers or courses of study, because for many, without federal financial aid college is simply not an option.

Consolidation of student loans may also be affected by the regulations. With interest rates still at historical lows, the time could not be better to consolidate loans to save interest.

About Ed Dixon

Ed Dixon - as an experienced writer and proven business leader, Mr. Dixon is the primary contributor for news related to Business and Finance. ed_dixon@newstaar.com