With little public notice or fanfare, the federal government has been providing financial institutions involved in the student loan business with a bailout projected to be over $100 billion. With the federal government now helping to provide the financing for 80 percent of the “private” market for FFEL loans, it is ridiculous to classify it as anything other than a massive corporate welfare system.
|By: Jon Walker Thursday March 11, 2010 8:12 am|
|By: David Dayen Wednesday March 10, 2010 3:50 pm|
Blanche Lincoln, threatened by a primary campaign in Arkansas, has decided that the best way to win over Arkansans is to make college less affordable for them and funnel money to the biggest banks in America.
|By: Jane Hamsher Tuesday March 9, 2010 12:59 pm|
Student loan lobbyists have been distributing a memo around Capitol Hill, with the misleading claim that if the FFEL program is eliminated in favor of direct lending, all of these jobs in the industry will be lost.
The bottom line: job losses in a tough economy are nothing to treat lightly, but the claims made by lobbyists don’t hold to close scrutiny, and the jobs impact must be weighed against the number of students currently enrolled in each state if money that could be going to schools is instead propping up a costly and unnecessary industry that is surviving only because of government subsidy.