This is a good battle for Obama and one that he ought to make. The lenders have been squeezing college students (and parents) for too long and even many universities went along with the program, driving business into the hands of the easy lending businesses. If the US wants to be serious about competing and staying ahead, it's not going to get there by sitting back and ignoring education. AP:
President Barack Obama on Friday renewed his call for the government to stop backing private loans to college students and replace them with direct government loans to young people, a challenge to a decades-old program with strong congressional support.Longer term, something is going to have to change with the costing of the system as well. The US university system is pricing itself out of the global system. Even for American families, how is it possible to afford the university system? There have been a number of articles in recent months about Americans traveling abroad to the UK or Canada for college due to the much lower prices for top schools. If the quality was comparable but pricing was considerably lower, would you encourage your own kids to investigate a non-US university for undergraduate studies?
Obama's plan to eliminate the Federal Family Education Loan program could save $48 billion for taxpayers over the next decade, but critics warn it could turn the Education Department into a national bank. Lenders and some college officials oppose the proposal, which Obama backed as a U.S. senator and pushed during the presidential campaign.
