Student Loan - Loans and Debt Consolidation

FEDERAL REFORMS IN PERIL LOBBYISTS FOR THE LOAN INDUSTRY RIDE AGAIN THE STAR LEDGER BLOG

Federal reforms in peril: Lobbyists for the loan industry ride again

Published: Wednesday, February 10, 2010, 4:52 PM Updated: Wednesday, February 10, 2010, 5:28 PM

The industry fought back, unsuccessfully, it seemed, until now. With the Obama Administration under assault on several fronts, the full court press is on to try to execute a retreat on this significant reform.

Opposition was wrong-headed before and it is wrong-headed now.

The proposed reform is a no-brainer, really, since the billions in savings will make more funds available for student loans at a time when students and their families need them most and establish tax credits for families, aid community colleges and modernize public school facilities.

It s really hard if you re not a lender to argue against reform.Why should the government subsidize the banks to provide student loans?Where is the value added?It s hard to find anyone producing a rationale for keeping things the way they are. Except lobbyists. That s not a surprise.Apart from financial gain to banks and other lenders there is none.

The assertion that this reform is a government take-over is absurd.The direct student loans would not be handled by the government, but by colleges and universities, as Pell grants are now.And, as private companies would collect and administer the loans, the nonsense that jobs would be lost another assertion--is absurd because the work force needed to service billions in loans is li...[more]