<p>All the 'system wide liquidity solution" paradigm is, is a form of threat to ensure that the subsidies to these companies continue. And although SM and other companies may be having some minor difficulties now, those indirect and direct subsidies (and 'liquidity") have made them billions via the support of public money.
Now the loan companies are feeling a minor pinch, in part because of their accessory playing around in the scandalous games of conduit financing, they want a few more billions for a bail out. And as already noted, much of the current ‘crises’ is also premised on the mere threat that Congress cut less than 5% of the subsidies going to these companies. In political terms, what SM and their cabal are doing is a political threat, using the futures of yet another generation as conceptual hostages.
And really, one of the causes of the actual crises in the student loan situation is directly attributable to the abusive lending practices of these companies combined with the draconian credit laws and regulations which the Bush administration has allowed to be enacted. Largely and specifically for the benefit of their friends in the SL industry. The core and unfortunate reality is the effect of these decisions benefiting what amounts to as a financial and governmental cabal-has made it impossible for most students, former students
to pay the outrageous demands set upon them by this same loan industry.
So yes, Congress will give them their ‘liquidity’ because lobby power and money buys billions in special favors. But many students and former students caught in the vise of this ‘industry’ will be economically ruined as the pressures of the current economy escalate. But they don’t have the ability to buy the ear of our Congress. It shows how skewed the priorities have become in our country, rather than properly funding or reforming the support systems for American higher education, or helping the common people who been trapped by a failed system, all they’re going to do is ensure more 'liquidity" for a socially destructive cabal. As Sueinphilly noted, there are some reputable companies in this field, but, as many already know they have little or no access compared to the giants. But hey, as long as A. Lord gets his private golf course, it’s all ok. That’s what academia was formed to create, right?</p>