Tuesday, April 14, 2009
Student Loan Reform
President Obama has proposed some sweeping reforms of the student loan system that seem to make a lot of sense. In short, he wants to cut down on the role of the banks, who reap big profits while taking little risk under the federal system.
I'm sure that one reaction will be that this is creating a big new federal program, but I'm not sure that is fair. There already is a big federal program, it just creates a lot of unearned profit for banks. I'm not sure that eliminating student loans is something anybody wants, and reform is the better solution.
I am willing to reconsider, though, if someone can tell me what value the private lenders add to the system...
I'm sure that one reaction will be that this is creating a big new federal program, but I'm not sure that is fair. There already is a big federal program, it just creates a lot of unearned profit for banks. I'm not sure that eliminating student loans is something anybody wants, and reform is the better solution.
I am willing to reconsider, though, if someone can tell me what value the private lenders add to the system...
Comments:
<< Home
The Department of Education just "bought" mine anyways...so I don't see how it matters too much that they get them all
I'm surprised that this little post didn't ramp up more discussion. I'm all for the reform. I think the banks get way too much for the very little that they do. Student loans backed by the Federal government are not going away. I'd rather, though, that my bank not make a huge profit off of I loan that I cannot discharge in bankruptcy and that is guaranteed up to 97% by the federal government. It's like taking candy from a baby.
They'll lose the capital provided by private banks, which means they'll have to find it elsewhere. I wonder where?
Post a Comment
<< Home
