ScholarPoint Statement on House Passage of H.R. 5

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ScholarPoint CEO questions benefit to students.

ScholarPoint Financial, Inc., a national online consumer lending company specializing in student loans, is pleased that the House of Representatives is addressing the issue of student loans and their resulting debt. However, the legislation passed today merely puts a band-aid on the problem of college costs by cutting the interest rates on subsidized Stafford student loans over five years.

Chris Studer, Chief Executive Officer of ScholarPoint Financial, Inc. released the following statement today in response to House Passage of H.R. 5, the College Student Relief Act.

ScholarPoint Financial, Inc., a national online consumer lending company specializing in student loans, is pleased that the House of Representatives is addressing the issue of student loans and their resulting debt. However, the legislation passed today merely puts a band-aid on the problem of college costs by cutting the interest rates on subsidized Stafford student loans over five years.

To offset the cost of the interest rate reduction on only one specific student loan, the bill will increase the fees paid by student loan providers. It specifically targets businesses like mine that specialize in consolidation loans. This bill, if enacted into law, would make it more difficult for me to successfully offer low-cost consolidation loans to help student loan borrowers manage their debt.

ScholarPoint shares Congress's goal of reducing the cost of student loans, but this legislation hurts small businesses like mine, while not addressing the rising cost of college or access for America's low income students. Consolidation is one of many means today's college grads have to manage the financial impact that student loans can have on their lives. Taxpayers and society as a whole would benefit more if our tax dollars were used to help increase access for low income students, rather than by penalizing small business owners.

ScholarPoint Financial, Inc. is a national online consumer lending company specializing in student loans and offering a full range of innovative education finance solutions. Loan options for students and their families include PLUS, Stafford, Consolidation and Private loans. ScholarPoint combines industry-leading borrower benefits, best-in-class service and innovative technology. Unlike many other traditional loan sites, ScholarPoint's technology platform was designed exclusively for its website, integrating the entire process for an online experience that is simple, instant, and complete.

http://www.ScholarPoint.com

Contact:

Joan Coyle 202-289-3903

jcoyle @ wpllc.net

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