Banks Lose, Taxpayers Win in Student Loan Reform (Houston Chronicle)
"[T]hough the high cost of higher education isn't likely to change anytime in the near future, where students go to get loans could well change radically," Houston Chronicle reports. "The Obama administration, with strong backing from congressional Democrats, is proposing to eliminate subsidies to private lenders that handle student loans. The biggest winners from the plan, which appears headed for passage on Capitol Hill, would be taxpayers, who would save nearly $100 billion over the next decade, according to the Congressional Budget Office, as well as the lower-income students who would receive more aid in the form of grants instead of loans. The big losers are private lenders like Wells Fargo Bank, which underwrote the $22,600 loan Van Keuren's parents needed for this past academic year."
You can read the complete May 17, 2009 Houston Chronicle article on-line.
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