Ending private sector competition in the student loan industry and making the Direct Loan program the sole provider will kill jobs, and greatly expand the control of the federal government. The Federal Family Education Loans (FFEL) program has been the overwhelming choice for student and parents for the past 40 years. In fact, 78% of all new federal student loans from 2007-2008 were administered through this program. Yet, the government wants to end it. It doesn’t make any sense.
If nothing else, this bill tells us one thing — if the government can’t succeed on its own merits, they’ll eliminate the competition. That should concern us all.
Cross-posted from Townhall.com