Student Loan Website Down On First Day Of Overhaul

03.31.10 | FL News Team

On the very day President Obama signed the healthcare reform bill putting the government in charge of student loan lending, the website received a failing grade. On Tuesday people logging onto either found an error message or simply were not able to connect to the site. By late Tuesday the sight was up and operational, but the short problem gave fodder to those concerned about turning over programs to the federal government. Oklahoma Republican Senator Tom Coburn said it was a "case study" of what happens when the government takes over for the private sector.

 The legislation essentially removes private lenders from the federal student loan market. Supporters accused private lenders of abusing the student loan system for decades. President Obama said the overhaul will eliminate "unnecessary middlemen," providing more money to students. Obama says the savings to tax payers will be 68-billion dollars over the next decade. The bill also expands the popular Pell Grant program.