Big U.S. Role in Lending to Students (New York Times)

Paying for College
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<p><a href=“http://www.nytimes.com/2009/02/26/business/26student.html[/url]”>http://www.nytimes.com/2009/02/26/business/26student.html&lt;/a&gt; </p>

<p>“But in a contract signed just four days later, on the last day of the Bush administration, the Education Department effectively agreed to buy up to $60 billion in loans, $35 billion more than the figure published in the Federal Register. That is almost enough to purchase all the federal loans made to students last year.”</p>

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<p>"This new program will allow lenders to sell back to the government federally guaranteed loans made as long ago as October 2003. And that has some concerned that lenders will dump their worst loans, leaving the government with losses.</p>

<p>The program is supposed to cost taxpayers nothing, but the Obama administration has asked for additional analysis."</p>

<p>“We have reviewed the analysis with the staff here, and we do not have confidence in the bottom line,” said a senior official at the White House Office of Management and Budget, who insisted on anonymity, citing administration policy. Referring to differences between agreements entered into by the departing Bush administration and public descriptions of the program, the official added, “The documents on their face raise serious questions about whether it’s cost-neutral.”</p>

<p>Ah, yes. Another financial scam courtesy of the outgoing Bush administration.</p>

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<p>Follow-up story: </p>

<p><a href=“http://www.nytimes.com/2009/02/27/business/27student.html[/url]”>http://www.nytimes.com/2009/02/27/business/27student.html&lt;/a&gt;&lt;/p&gt;

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<p>Follow-up story: </p>

<p><a href=“http://www.nytimes.com/2009/02/27/business/27student.html[/url]”>http://www.nytimes.com/2009/02/27/business/27student.html&lt;/a&gt;&lt;/p&gt;