Student Loan Industry Pushes Back

washingtonpost.com — With the Obama administration proposing to overhaul the programs a majority of American students use to finance their college education, the student loan industry is fighting back. The administration is calling for sweeping changes to the decades-old approach of providing federal subsides to private loan companies, arguing that the revamp will save $94 billion that can be redirected to needy borrowers and help even more people go to college. But the industry and its congressional allies are countering that it would add billions to the national debt, put thousands of industry employees out of work and provide shoddy service for borrowers. The result of the growing confrontation will determine the way students across the country pay for college and, potentially, the fate of dozens of student lending firms.

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