One can only be amazed that NAF continues to argue for an auction to "reduce excessive student loan subsidies" at a time when Congress and the higher education community is worrying about whether loans will be available to students. Don't they read the newspapers? An auction mechanism is directly contrary to loan providers competing to convince individual consumers to use their products based on the quality of those products (the loan servicing) and prices. Consumer lose under an auction--arguably reducing federal costs does not get them a lower cost loan or assure them quality servicing. There are no longer "excessive subsidies" left to eliminate in the student loan program, so the only thing an auction would achieve is to further destroy any private sector participation in student loans. NAFs advocacy for an auction is just another way for it to advocate Direct Student Loans and elimination of borrower choice. It is a red herring and should be identified as such.