Ha, ha, ha, ha ha. What can I say. Students don't want the Treasury to give even more money to predatory student lenders. Imagine that.
Considering how the Treasury and the Fed already gave to every other predatory lender out there, especially the credit card companies, why should this be any different?
Wow, here are some real horror stories on student loans and thanks (I'll assume) to bankruptcy law changes, the debt is very tough to get out of.
Seems there is one guy out there who has created a website StudentLoanJustice.org trying to get anyone to listen.
This article in the New York Times goes into some real horror stories.
Basically people cannot find jobs or get sick and so on and can't pay them off, but the late fees, interest rate increases, penalties read like your classic predatory credit card.
The action is intended to address a crisis in the market that has forced Citigroup Inc.'s Student Loan Corp., SLM Corp. and about 50 other lenders to stop writing some forms of student loans. The companies cite increased borrowing costs, cuts in government subsidies for education loans and a lack of investor interest in securities backed by loans.
Without government action, demand for federally backed student loans would outstrip supply, industry officials said. About 7 million borrowers will need more than $68 billion in federal loans this academic year, according to Education Department estimates
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