Submitted by Anonymous on February 25, 2008 - 3:04pm.
Congratulations. You and your posse succeded in wiping out an industry (mortgage and credit card lenders next?). A few items require more detail:
"Should a large private student loan access issue arise, extending even beyond proprietary schools, there are options for federal action to ensure the availability of capital. But let’s not get ahead of ourselves."
Care to enlighten us on how ED will fund non-secured education loans?
"Regular old banks continue to make federal Stafford loans."
Don't you mean three to five mega-banks that already originate more than $3B in FFELP loans will be ok, in other words a monopoly industry? All of the other ones will either exit the program (e.g. WAMU, Sovereign Bank) or make losses on FFELP to try and salvage traditional banking customers.
"But if any school is worried that its students will have difficulty obtaining FFEL Stafford loans, that school can always switch to the U.S. Department of Education’s Direct Loan program"
Wasn't that the goal of your concerted effort to begin with? To force borrowers to use the government product that cost more and could not compete in an open market?
typical "ut,oh" response from leftists
Congratulations. You and your posse succeded in wiping out an industry (mortgage and credit card lenders next?). A few items require more detail:
"Should a large private student loan access issue arise, extending even beyond proprietary schools, there are options for federal action to ensure the availability of capital. But let’s not get ahead of ourselves."
Care to enlighten us on how ED will fund non-secured education loans?
"Regular old banks continue to make federal Stafford loans."
Don't you mean three to five mega-banks that already originate more than $3B in FFELP loans will be ok, in other words a monopoly industry? All of the other ones will either exit the program (e.g. WAMU, Sovereign Bank) or make losses on FFELP to try and salvage traditional banking customers.
"But if any school is worried that its students will have difficulty obtaining FFEL Stafford loans, that school can always switch to the U.S. Department of Education’s Direct Loan program"
Wasn't that the goal of your concerted effort to begin with? To force borrowers to use the government product that cost more and could not compete in an open market?