"Shares of student lending firms fell 6 percent or more Monday after President Bush's budget request included a proposal to cut lender subsidies by 0.5 percentage points..."
"The White House said reducing the subsidy would save an estimated $12.4 billion over five years that would be redirected to Pell Grants, which go to the poorest college students."
Yeah, that's right, the Bush White House. George W. Bush has got religion on student loans.
Also check this exchange: Senator Ted Kennedy says: "The student loan program works brilliantly for the banks, but not for the students. We ought to take the money-changers out of the temple in terms of student loans." A slight directed at the lenders, to which Tim Fitzpatrick, CEO of Sallie Mae responded, "Unfortunately, Sen. Kennedy has attempted to smear the integrity of Sallie Mae, the student loan industry, and the financial aid professionals. I'm certainly personally disappointed in his baseless and insulting attacks."
I'm confused--I don't really see any smear or attack there. Is Sallie Mae saying that they're not moneychangers by profession?