A banking lobby group, the Consumer Bankers Association, told Washington today that if they cut the rate on interest loans, the result will be less money for college students. From the Chronicle of Higher Education:

In a written statement released on Tuesday night, the Consumer Bankers Association said that if Congress made those changes, “the ability of lenders to invest in technology, enhance customer service, and offer benefits to borrowers” would be put at risk.

The bankers’ group noted that Congress cut the payments lenders receive from the government to make student loans by $8-billion last year, as part of legislation that Republicans were pushing to reduce the federal budget deficit (The Chronicle, February 2, 2006).

“This program, which has been highly reliable and serves students attending 80 percent of all U.S. colleges and universities, cannot sustain annual deep budget cuts without the quality of services to borrowers being hurt,” the bankers’ group stated.

You knew it was going to come to this, didn’t you? The opposition is using one of the well-worn tactics of liberals when fighting for resources for underserved populations — use the kids as pawns.

I’m not buying it. Sometimes your net worth has to go down in order for your long-term value to go up. I chose to work part-time through the early years of my parenting because I believe there is a value to investing in strong relationships with your children. Lenders need to take stock of the value of investing in our college students. If doing so costs money, what are the long-term benefits? How about a better-educated, less debt-ridden populace, for one?