A letter from the president of National Association of Student Loan Administrators summarizes the good news for student loans in the government’s economic rescue plan:
The best news for student aid is that one of the bill’s provisions extends for two years the ability of taxpayers to take a deduction for qualified tuition and related expenses.
Under the new law, the Treasury Department Secretary would have the authority to intervene in the student loan market. That authority is so expansive, it would apply to intervention in the market to prop up both FFELP and private education loans. While the legislation grants the authority to intervene in these markets, it does not spell out what form such intervention shall take.
Given the May 2008 action taken by Congress in passing the Ensuring Continued Access to Student Loans Act (ECASLA), and the recent extension of that legislation, we remain optimistic that federal student loans will continue to be widely available to borrowers.