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Higher Ed in the News

Lobbying effort threatens overhaul of student loans

February 5, 2010

An aggressive lobbying campaign by the nation's biggest student lenders has now put one of the White House's signature plans in peril, with lenders using sit-downs with lawmakers, town-hall-style meetings, and petition drives to plead their case and stay in business.

Some 10 million students got loans last year to help pay for their educations, and there is disagreement about whether having the federal government take over virtually the entire lending program would help or hurt them.

Private lenders warn that students may default on their loans more often because they will get less counseling while the Obama administration says students will benefit from more grants and expanded educational programs.

The student loan industry, which would be forced out of the loan origination business if the proposal became law, is seeking to cast the administration’s plan as an ill-conceived government takeover that could put thousands of people out of work.

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