Wednesday
Feb172010
Banks Have Been Under Serving Student Loan Customers, Says Education Secretary
Department of Education Secretary Arne Duncan says banks have been failing student loan customers, and explains how student loan reform could fix the system. (0:47)
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Arne Duncan, banks, laurel brishel prichard, sallie Mae in Audio
Arne Duncan, banks, laurel brishel prichard, sallie Mae in Audio
Reader Comments (2)
What an amazing piece of obfuscation and lie. There is nothing in the bill, NOTHING, that reduces tuition or other costs. There is no basis to say any segment of the student borrower population has benn underserved. Any service innovation has come from the private FFELP industry and not FDSL. To Duncan, "You lie!"
This is merely lobbying from the White House as they accuse the rest of being lobbyists." Shame on the media for not being informed enough to ask tough questions and be used as mere puppets for an illfound agenda item
Yes Brash, you are right, tuition controls are required. But this is a multifaceted problem that requires multifaceted solutions.
The student loan companies have been gouging students far too long. There is a difference between the current FFELP rate and the Direct Loan is a full 75 basis points. FFELP lenders hail their success at getting students to enter into direct payment discounts of only 25 basis points. How about eliminating the middleman altogether and reducing the cost of financing education by a full 75 basis points.
Sallie Mae owns three corporate jets that need to be fueled. Their CEO has three mansions, one with his personal, private 18 hole golf course. This is already a government program. Why keep the middlemen? See what it funds? Get rid of them. Eliminate the FFELP.