re: collegeloanconsultant Where exactly would colleges and universities generate the cash flow necessary to set up their own private loan system? While the big kahunas have endowments that could possibly be used that way, the vast majority of institutions do not have the financial resources to become lenders. That's why they favor external assistance. Most institutions don't care from whence the tuition money comes, so long as the tuition money comes. Federal loans, private loans, it's all cash to the majority of institutions that run their operations purely on tuition revenue.

While the Feds should continue to oversee the cleanup of private loans, for high tuition schools, they are acting in a logical fashion by asking for extraordinary assistance. The alternative would be to increase the Federal loan limits, which I hope we all agree would be a disaster.