So there must be an article about ire and conflict. This from the Dow Jones Newswires ("Obama student lending plan draws ire of banks, some colleges").
Points raised in the article:
- Current FFELP program reliant on federal financing for survival:
"The fact of the matter is that the program is not working right now, that
private capital isn't available for these loans," said Rachel Racusen,
communications director for the committee.
AND
AND
"The credit crunch brought home the fact that the program doesn't provide a
reliable source of capital," Shireman said in an interview.
- Savings figure, currently at $94 billion, may come down based on a CBO update (as posted earlier, CBO is also evaluating Sallie Mae's alternative proposal which executives believe will meet or exceed the Administration's proposal)
"According to one industry source, the CBO could in the next couple weeks lower
its estimate to around
$85 billion
- Bankers continue to insist that the savings figure represents profit that the government achieves by borrowing at low interest rates and lending at higher rates:
"Others have questioned the way Obama administration officials have
characterized the savings as savings for taxpayers coming from the end of
federal subsidies paid to private lenders. The reality, according to the
Consumer Banking Association, is that the bulk of the savings will actually be
profits the federal government makes on the loans once it owns them."
So, not much new here, except for the revelation that the CBO estimate could be reduced.
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