Gail Collins talks sense about student loans–
Let us stop here and recall how the current loan system works:
1) Federal government provides private banks with capital.
2) Federal government pays private banks a subsidy to lend that capital to students.
3) Federal government guarantees said loans so the banks don’t have any risk.
And now, the proposed reform:
1) The federal government makes the loans.
Wow. You really do wonder why nobody came up with this idea before.
This is one example of corruption under the banner of privatization. There’s a big mess to clean up– let’s hope that this year’s freshmen will not be burdened by unreasonable interest rates on their loans when they graduate.
In related news, Parasitical Worms Afflict American Health Care. There’s a lot of this going around.