President Barack Obama has signed The Student Aid and Fiscal Responsibility Act on Tuesday. This act is about Pell Grant scholarship increase and also about loan issuance directly to borrowers.

The Student Aid Act is a part of health care resolution. House of Representatives have passed the bill by a vote of 253/171 on September 19^th and senate has approved the bill by 220/211 votes.

Previously subsidies were given to private loan lenders for providing financial aid to students. This distribution of financial aid was according to Federal Family Education program and is no more in use after the new act passing. But now according to new act all financial aid will directly go through the Direct Loan Program. This will save $87 billion in coming 10 year for the government after eliminating subsidies.

Read the full story

Banks are under pressure and trying very hard to increase profit in the credit card dealings. Interest rates are increasing, credit lines are being cut and additional fees are being made compulsory on even the best cardholders.

The increase in rates and fees is a sign of depressing new realities of the industry – there are high amount of percentage of uncollectible balances as a new US law may further limit the cards’ profitability.

Banks have started increasing interest rates and shortening the payment duration and are implementing new methods before new rules come into action in February. Recently,  Fed provided evidences that showed that banks are increasing interest rates.

Read the full story

Congressman from California, Mr. George Miller , a Democrat, has introduced 181-page Student Aid and Fiscal Responsibility Act of 2009 to House of Representatives. The bill proposes several major revisions to student loan system. One of them is to allow access to federal student loans for collage students even if they were ever convicted for being drug offenders.

In 1998 an student who got convicted for drug-possession were denied access to all type of federal funded student aid programs including federal student loans. In order to be eligible for a student loan, such student had to complete rehab programs and pass two un announced drug tests. Student who got convicted for selling drugs have different rules. They are doomed forever. no loans for them.

Read the full story

The creation of money is called most astounding sleight of hand ever invented. The creation of money is now privatized, as it is now being hold by a private banking cartel instead of congress. Most people think that government is the authority behind the issuance of money, but actually this is not the case. Except of the coins, the banks create all money, not the government. Federal Reserve Notes are issued by a private banking cooperation named the Federal Reserve, and lent to the government. Moreover Federal Reserve Notes and coins together compose less then 3% of the money supply. The other 97% is created by the commercial banks as loans.

This seems unbelievable that banks create money, they lend. Same was the feeling of jury in Landmark Minnesota case, until they heard the evidence. First national bank of Montgomery vs. Daly (1969) was a courtroom drama worthy of a movie script. Defendant Jerome Daly opposed the bank’s foreclosure on his $14,000 home mortgage loan on the ground that there was no consideration for the loan. Daly, an attorney representing himself, argued that the bank had put up no real money for his loan. Associate Justice Bill Drexler recorded the courtroom proceedings; he said his role was to keep order in the courtroom. Drexler had not given much mental acceptance for defense and watching this The Bank President Mr. Morgan took a stand and admitted that the banks routinely created money for loans and that this was standard banking practice. Presiding Justice Martin Mahoney and the jurors all agreed that it seems like a fraud.

Read the full story