LETTER: Fed takeover of the student loan industry has been a disaster
In 2010, President Barack Obama eliminated the federal guaranteed loan program, which allowed private lenders, mostly banks, to offer student loans at low interest rates. We were told the government could cut out the middleman and lend the money through the Department of Education, saving $68 billion, which could be used for Pell Grants.
The current student loan debt is $1.73 trillion. Another federal government fiscal train wreck. Do you hear any politician being held accountable for this massive boondoggle?
What really staggers me is that this process is still going on. I learned many years ago that if you dig yourself into a hole, the first thing you need to do is stop digging. This country needs to reverse course and place student loans back in the hands of the financial industry, which actually cares if the loans are paid back.
