Lenders Sought Edge Against U.S. in Student Loans – New York Times
President Bush’s budget reports that in 2006 for every $100 lent by private lenders, the cost to the government of subsidies, defaults and other items was $13.81, while the same amount lent through the direct loan program cost the government $3.85. The battle for dominance in the loan market has escalated as tuitions have soared and students have borrowed more
Lovely. The formula: corruption + free market ideology=fleecing of public.
Its in full swing. I want to find out if Bucknell participates in the direct loan program which allows the Federal Government to make direct loans to students. The article reports that some schools withdrew under pressure from private banks looking to force more loans their way.