Submitted by Rita (not verified) on April 11, 2008 - 12:19pm.
It should take as many lenders as the public wants. Congress has been stressing choice the past year or so and blasting schools for not offering their students enough choice. The PLUS Auction takes away most of the choice for consumers and you want to do the same thing for Stafford borrowers. No lender left in the FFEL Program is making a lot of money due to, yes, the cuts in subsidies and, yes, the capital market crises. This is very real, not a gimick the lending community made up. As usual Higher Education Watch is on the wrong side of this issue.
How Many Lenders Does it Take?
It should take as many lenders as the public wants. Congress has been stressing choice the past year or so and blasting schools for not offering their students enough choice. The PLUS Auction takes away most of the choice for consumers and you want to do the same thing for Stafford borrowers. No lender left in the FFEL Program is making a lot of money due to, yes, the cuts in subsidies and, yes, the capital market crises. This is very real, not a gimick the lending community made up. As usual Higher Education Watch is on the wrong side of this issue.