December 16, 2008

Irony: Bailout application less than 1/2 length of FAFSA!

Posted in FAFSA, Misc, Student Loan News, The Financial Aid Process at 12:59 PM by Joe From Boston

In an ironic twist of fate that will have many investors gritting their teeth, the AP is reporting that the application banks must fill out is only 2 pages long!

“Ever need a college loan? You’ve probably pored through the notorious eight-page FAFSA application. A likely home buyer? Try the fivepage Uniform Residential Loan Application.

But what if you’re a bank looking for a few billion from the federal government’s new Capital Purchase Program?

Two pages.

That’s all the nation’s financial institutions had to fill out to request money from the government’s $700 billion Trouble Asset Relief Program. In fact, the first page only requires bank contact information.

For some lawmakers and watchdog groups, the simple request form has become a symbol of a government financial bailout plan in need of more accountability and oversight.

“When student lenders and mortgage companies ask more questions in lending thousands of dollars than the federal government does when it injects billions of dollars worth of capital, we should all be concerned,” said Rep. Spencer Bachus of Alabama, the top Republican on the House Financial Services Committee.”


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