New York Times reports that Department of Education officials will be reviewing the arrangements made in the waning days of the Bush administration to support the FFELP student lenders.
Here were a few notable items in the article:
- Indicated that Asset-backed commercial paper (ABCP) or "conduit" program grew from $25 billion to $60 billion over four day period
- "The most likely size of the program, detailed in the Federal Register on Jan. 15, was $25 billion. But in a contract signed just four days later, on the last day of the Bush administration, the Education Department effectively agreed to buy up to $60 billion in loans..."
- Concern exists over whether this program puts taxpayer dollars at risk:
- "It was a last-minute deal, done at the 11th hour, and we want to make sure that it makes sense for students and for taxpayers,” said Arne Duncan, who recently replaced Margaret Spellings as education secretary. The concern, Mr. Duncan said, is that the program may put taxpayer dollars at risk.
- “We have reviewed the analysis with the staff here, and we do not have confidence in the bottom line,” said a senior official at the White House Office of Management and Budget, who insisted on anonymity, citing administration policy. Referring to differences between agreements entered into by the departing Bush administration and public descriptions of the program, the official added, “The documents on their face raise serious questions about whether it’s cost-neutral.”
As they say, it sounds like there's a new sheriff in town....
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