NAICU - Stop Washington's student-loan takeover

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Stop Washington's student-loan takeover

Tampa, Fla., Tribune - Editorial

March 15, 2010

U.S. Education Secretary Arne Duncan says removing the middleman - his term for the private sector - from giving student loans will save the nation about $87 billion over 10 years, money that could be used to provide more Pell grants to poor students. It sounds nice, but we don't buy it. Any savings, we suspect, would quickly evaporate once the federal government had the student loan business to itself. Look for inflated administrative costs, poor service and increased defaults.

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