Congress is moving legislation to eliminate federal subsidies to private lenders who are making tidy profits off struggling college students.
The House last week passed HR 3221, which would end new taxpayer subsidies to companies that lend students money for college. Instead, the Education Department, which already lends directly to students — at lower rates than private lenders — would become the main source of government-guaranteed loans.
The Star-Telegram says this should be seen as beneficial to students, parents and taxpayers.
The banking industry has already benefited from a taxpayer bailout. And when the economy tanked last year, many banks, along with other private lenders, shut their counters to students until the federal government poured more money into the student loan program.
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