From the Seattle Times: The Problem With Boehner
The federal student-loan program has been an open-pit gold mine for banks. The taxpayers guarantee the companies against both deadbeat borrowers and risks posed by rising interest rates. Uncle Sugar even offers a free hedge against changes in interest-rate spreads that could harm the lenders' bottom line. (Other businesses must go to Wall Street and pay for such services.)
"In American history, this is the most outrageous giveaway ever extended by the federal government to private lenders," says Barmak Nassirian, associate executive director of the American Association of Collegiate Registrars and Admissions Officers.