Student Loan Changes

Recently the President signed a reform and restructure of the Student Loan program. To me this was a no brainer but again our Republican friends found cause to disagree. I simply do not understand. Under the former plan the government paid banks to administer the student loan program and then also provided protection to the banks should the students default on those loans. In short the banks would make a profit no matter what, and if things went poorly the government was left holding the bag. What's more being that banks are for profit the driver was profit not getting kids in college.

Under the new plan the government has taken out the banks as a middleman. Loans for students will now come directly from the government and as the government is surely non profit the extra money not spend on overhead will be plowed back into the student loan program.

If the loans go south the government is no more and no less on the hook than they were with the banks, and in this way the government can affect loan balances when the the borrowers do things such as teach in poor schools, provide rural medicine and other things deemed of value to society as a whole.

For those who are against social engineering this might not ring well but the real worry here for Republicans is that that last thing they need is a bunch of young people exposed to a government program that takes out the profit making middleman and allows the government by running a program to eliminate the corporate interests and reduce the administrative overhead by a ten fold percentage. If people saw this happening it might make them think twice about ...well you get the picture.