We're not too sure what goes on inside Secy Spellings mind. Or what her people tell her. Or how a government official can objectively perceive reality. This past week Secy Spellings provided testimony to Congress basically saying that all is well with student lending. We're quite sure this is exactly what Secy Spellings believes. She's been saying this for a while.
The problem is: this isn't the reality of FFELP lending. Not by a long shot. It seems very few lenders have stopped lending in the program. Nay, it seems all lenders have left the FFEL program: for-profit lenders, state student loan authority's, non-profits -- they're all done with FFELP. A combination of the Student Loan Sunshine Act and the liquidity crisis has brought the program to an abrupt halt. We've heard from or contacted the top 20 FFELP lenders -- most are beyond the decision to halt FFELP lending, they're considering completely shutting down student lending operations.
But wait, Secy Spellings just told Congress not to worry, it will be all OK? Maybe it's the water in the Department of Education. Maybe something in the air in the building. We're not sure. But Secy Spellings said there's only a very small number of the 2,000+ FFELP lenders have dropped out of the program. Does Secy Spellings know something we don't? Not likely.
Grab your popcorn and watch what happens this spring and summer. Cuz Secy Spellings is gonna get BOUNCED out of the Dept of Ed over this fiasco. Fact of the matter is: She's dead wrong here. And her inability to face what's really going on is gonna make for a truly embarrassing moment for her. It's gonna be a career ender. We've got a good seat.
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1 comment:
Good for people to know.
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