Wow! Did you see the Senate hearing today? We didn’t, but sure did get a lot of feedback about it. It seems that Sen. Dodd accused the student lending industry of turning their backs on the students!?!?
We’re gonna take this opportunity to get all Ayn Rand over Sen. Dodd. Private lenders ultimately serve to make profits; not to provide a money loosing product to the marketplace. If Sen. Dodd is so concerned about the plight of the students, perhaps he should work on getting legislation in place that allows private lenders to participate in the process while meeting their ultimate objective. Oh wait: HE DID THE EXACT OPPOSITE LAST FALL!!!!! In reading a summary of the hearing Sen. Dodd seems to be totally fixated on blaming the liquidity/credit crisis on the problems. This is just downright irresponsible if you ask us. The lawmakers need to admit responsibility to the problem; otherwise, they won't begin to undo what they did. Sure it's not 100% the fault of last Fall's legislation, but even if liquidity were restored, no one is going to make loans that loose money! Our fav quote of the day is from John Remondi, Sallie Mae's CFO: "Every loan we make today we're making at a loss."
So, let's recap: The Department of Education is now "monitoring the situation closely", our elected lawmakers refuse to admit they've contributed to the student lending mess, and no FFELP lenders are actively looking for business (if they are in fact still in business). It's fun to watch, that's for sure.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment