The NYT’s Eric Lichtbau brings us news that the Obama administration is running into some steep resistance from the bankers who might be cut out of the student lending business and replaced by an automatic teller machine at the Department of Education. The taxpayer is on the hook for all of the loans so why bother keeping all of those fancy pants loans salesmen trying to “give aid” to the students. In the end, the loans end up back in the hands of the US government so the layer is pretty useless.
While I admire the guts of the administration to change things, I don’t think it’s setting the target high enough. The private loan brokers don’t add much to the equation and they don’t cost much either when all is said and done. The real cost is the fancy buildings, the high salaries, and the proliferation of “research”. All of those drive up the cost of education.
Related posts:
- Research Universities Ask Obama for More Money
- Obama to force us all to pay for more college?
- Obama to cut student loans to 10% of income?
- Private loans disappearing
- U.S. Government to Nationalize Loan Biz
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