Submitted by Christina Nash (not verified) on June 28, 2009 - 3:18pm.
This isn't surprising. Many of these non-profits are the least efficient players in the student loan program, which is confirmed by this proposal to inoculate themselves from competition. If, as they often claim, these entities provide student benefits that other lenders don't (usually financed with tax-exempt funds bestowed on them by the state and taxpayers), then why with these advantages are they afraid of competition?
The answer can be found in the recent articles by New York Times reporter Jonathan Glater:
The so-called benefits promised to borrowers by these entities aren't materializing. It takes incredible audacity for these entities to ask for special status even a legislative monopoly in smaller states and a new politically determined subsidy for "college outreach services".
Any member of Congress who supports this particular proposal, or anything akin to it, will have some serious explaining to do.
Remarkable
This isn't surprising. Many of these non-profits are the least efficient players in the student loan program, which is confirmed by this proposal to inoculate themselves from competition. If, as they often claim, these entities provide student benefits that other lenders don't (usually financed with tax-exempt funds bestowed on them by the state and taxpayers), then why with these advantages are they afraid of competition?
The answer can be found in the recent articles by New York Times reporter Jonathan Glater:
http://www.nytimes.com/2009/05/27/your-money/student-loans/27forgive.htm....
The so-called benefits promised to borrowers by these entities aren't materializing. It takes incredible audacity for these entities to ask for special status even a legislative monopoly in smaller states and a new politically determined subsidy for "college outreach services".
Any member of Congress who supports this particular proposal, or anything akin to it, will have some serious explaining to do.