Bush Addresses Student Loan Credit Crunch
"The recent credit crunch makes it uncertain that some students will be able to get the loans they need,'' Bush said at the White House press conference. "Congress needs to pass a bill that would temporarily give the government greater authority to buy federal student loans.''
According to Bloomberg more than 50 lenders, or 14% of the private student loan volume, have withdrawn from the guaranteed student-loan program. This is a direct result of the credit crunch that our country is currently facing, predatory student loan lending practices, and the recent legislation that cut federal subsidies to private student loan lenders.
I do not think this is the right course of action personally, why not reform the student loan and education funding systems we have in place instead of buying up all the loans and bailing out the lenders that have been making so much money at the cost of our students.
