Newspaper article The Florida Times Union

STUDENT LOANS; Use the Best Alternative

Newspaper article The Florida Times Union

STUDENT LOANS; Use the Best Alternative

Article excerpt

Between the extremes of big government and private enterprise, there is a middle ground: competition.

When a service can be performed by either government or private industry, use competition to find the best value for the taxpayers.

In the case of federal student loans, it doesn't make sense to create an additional layer of cost for what is a transfer payment.

In fact, one thing the federal government does well - too well - is transfer money. Social Security is a prime example of a federal service that does it well.

Now the Obama administration wants to have the federal government take over direct loans from the Treasury. Private companies still would service the loans, but the change would eliminate the middle man.

The servicing contracts would include competition, as well. Private companies will receive more business if they keep down defaults and provide good customer service. The bill also would require the processing be conducted in the United States. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.