Government should handle all student lending
San Jose Mercury News | McClatchy-Tribune News Service
Issue date: 3/3/10 Section: Op/Ed
The industry also says the bill will cost jobs. Sallie Mae estimates it would be forced to lay off some 2,500 people, though it doesn't account for positions that would be regained because the plan calls for private companies to service the loans. Regardless, saving these jobs isn't worth $80 billion.
The lenders argue they can serve students better, and they're at least partly right, which is why the government would still contract with them to service the loans.
But during the economic collapse, many private lenders stopped offering loans altogether, forcing colleges to turn to the more reliable direct lending programs instead - hardly a shining example of excellent customer support.
It's one thing to lose your car loan when credit markets freeze up. It's quite another to be unable to attend college. Student lending is too important to be left to market vagaries.
This plan eliminates corporate welfare and funds key education programs without adding to the deficit. The Senate should pass it without delay so that colleges will have time to implement it in time for the next school year.
The lenders argue they can serve students better, and they're at least partly right, which is why the government would still contract with them to service the loans.
But during the economic collapse, many private lenders stopped offering loans altogether, forcing colleges to turn to the more reliable direct lending programs instead - hardly a shining example of excellent customer support.
It's one thing to lose your car loan when credit markets freeze up. It's quite another to be unable to attend college. Student lending is too important to be left to market vagaries.
This plan eliminates corporate welfare and funds key education programs without adding to the deficit. The Senate should pass it without delay so that colleges will have time to implement it in time for the next school year.
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