Too bad!  I would much prefer bank loans over government loans.  I personally do not like this idea.  Government has too much control arlready.  I'm not sure now if my Grandson will be able to attend colletge or not.  I will discourage him from taking loans from the Government but, utimately it will be his decision. 

I'd like to thank Arvest and banks across the country for their roll in providing federally-insured student loans for myself, my wife and millions of other Americans across our country.  I think it is a shame and a crime that our elected officials in the federal govenment have pushed out private lending institutions in this way.  And, I'm extremely skeptical that the federal government will be prepared to issue all the loans that students will soon need for  the 2010 / 2011 school year.  I hope Arvest will be offering private school loans, because when the govenment drops the ball on this there are going to be a lot of families looking for alternative financing... or alot of students dropping out.

John on 3/31/2010 -- You are thanking the banks for providing FEDERALLY-insured student loans.  Do you understand that that means it is a government loan.  Banks want all of the profits but none of the risks.  Sometimes I think the American public is so ignorant!!!  But I am glad you ask the bank if it will provide private loans.  I can answer that,  NO, because the banks would being taking the risk,

How this legislation was passed was sneaky at best - passed as part of the "healthcare reform" bill. It will be interesting to see if they steer students toward certain schools. It's a shame that took it out of the hands of bi-partisan banks.

I agree 100% with you!! It's sad that people are so narrow minded that they don't see the overall picture. They've got it in their heads that they don't like our elected officials so they attack every and any change that is made. Look folks this change is to help the students not to hurt them! The origination fee that the bank charges will be cut out of the loan, which means less money for the student to pay back....duh.....and yes it's a government loan even when you go through the bank.....WAKE UP!!!!!!!!

Edited by Arvest Blog Admin: Please do not respond directly by name to other commenters.

1) It is beter to have the loans administered by the nice people at Arvest or the people at the local DMV?  Someone has to do it.

2) Arvest and all the other private banks have to leave the problem not because they can't deal with risk (they do so every day with every loan they make), but because they can't compete with the Federal loan system, which allows for lower rate since there is much less risk in them.

For example, the only way to discharge them is to pay them off or die, they aren't touched in bankruptcy.  Given the nature of these loans (it would be too easy for the young to declare bankruptcy, wait 7 years and then get on with their lives), this level of Federal intervention is probably required.

Edited by Arvest Blog Admin: Please do not respond directly by name to other commenters.

This is totally wrong of the Federal Government to do something like this to the American people. It should never be allowed for any bill to be added to another as each should be able to stand and pass one its own merit. This is just another way to take away something from the people. Why put all over Facebook that we should go to college and get a degree then take the ability to do this from us. This is totally irresponsible. 

AMERICANS need to wake up before it is too late.

The loans that were being handed out by the bank were still government backed loans. The government just cut out the middle man and we all know it gets a little cheaper if there isn't a middle man. No offense to Arvest.. I'm sure the banks aren't too put off by it either as they will no longer have to be responsible for the expenses of loaning government money or collecting said money.

FFELP offered a choice of loan providers SAFRA does not. FFELP let banks and for-profit servicer’s provide loans in a competitive market. SAFRA (student aid and fiscal responsibility act) will dictate what companies participate.

If this helps with the disgusting capitalization of student loans then well done.  Its almost criminal how institutions capitalize until the student cannot pay even the interest.  

Ladies and Gentlemen,

There are plenty of banks that don't charge origination fees. The interest was federally regulated, and the government wasn't taking an insurance risk really because YOU CAN'T bankrupt student loans and haven't been able to for over 30 years. The politicians are just looking for more money to finance all the BS they pass. If you read through only half the bill (new concept guys and gals, read the legislation before you talk about it), you will find out it is RIDDLED with earmarks and all kinds of crap they didn't want to talk about. So ya, listen to the media, since they are in the business of MAKING MONEY too (aka ratings), or you could do something smart and read the bill before you speak. My point is, from a student perspective, this doesn't help us or anyone but the government. And Secondly, our government has now taken over health care, education, and about 40% of our paychecks, if not more. Hope you're enjoying what you've created everyone. Your politicians now OWN you and your government well.... they seem to really care about what might make them look good, it has nothing to do with the right thing. By the way, I used to work at a bank, and yes most of them already provide private student lending as long as there is a financially responsible person to sign on the loan. That's my two cents.

just another thing that big government is taking over.  they will probably raise the interest rates AND the paperwork to secure a student loan.  i'm sure it won't be as timely either.  my husband had 3 student loans (years ago) and they were VERY low interest and VERY easy to pay off.  those lenders work well with us and gave us an extension each time we needed one.  i know the money came from the government THROUGH the bank, but people are blind if they think the government won't be charging fees of all sorts.  does anyone ever enjoy their trip to the revenue office or the courthouse or the social security office for any kind of government paperwork that needs to be done?  well, now there's just one more thing.

so sad

I find it very interesting that people have the nerve to publish a blog on a subject they know nothing about. It is true that the student loans that we have been receiving are insured through our federal government already. What would be wrong with the loan coming straight from the government except to strain the deficit a little more. Yes, there is a way to get out from under these loans.....and that way is the United States Bankruptcy Court. Before you talk about things you don't know about, you should do a little research. There are cases where the bankruptcy courts have dismissed student loans on the grounds that these loans are too much of a financial burden on the individual to bear. I don't agree with this practice, but it is possible for this to happen. The banks have made a great deal of money off of origination fees for student loans and that is why they are saddened by this news. Imagine the total of origination fees for every student participating in the student loan programs across the country every year. This number is in the BILLIONS!!!! I don't know if we will be better off or not, but I do know that the banks are just as shady as the government if not more so. My only hope is that everyone will still have the opportunity to better themselves with a continued education.

I, for one, am happy that my costs and interest will be cut, and that all my loans will be in ONE place.  It's really confusing to try to figure out billing between all the student loan agencies and all the banks.  I bank with Arvest, and I am sorry that they are losing a lot of business this way, but student loans are ultimately to benefit students, not banks.  Now more students can get more help, which will be helpful to our overall economy when more educated workers join the work force.

I strongly dis-like the government in education finance of the student ability to go to school and what this control can lead to manditory education of the content desired by said government.

Remember the education of students in Germany in the '30s and '40s!