<p>Indirectly you are implying that the 544 billion is in jeopardy as DOE records indicate areas with default rates as high as 20%. The panic button is hit. The reality is that you are concerned about perceived abuse in proprietary schools that are currently only around 6% of total loans, and 80% of them do not go into default. Your WashPo article is from April 2007. Lots of reforms on private lending disclosures went through Congress in summer 2007. Sallie Mae and NelNet are your prime offenders. I don’t dispute that; I know it to be true. But to eviscerate an entire industry for what these two did, most of which has been dealt with now, and out of concern for perhaps 20% of 6% of the total loans outstanding will cause untold damage to over 94% of the post secondary student population. It’s indefensible. Tell your students to do what I do with all the student loan junk mail I get…throw it away. If they get a phone call…hang up. End of problem.</p>
<p>Read that BNET article I cited in post 41. Even Sallie Mae won’t make these loans anymore. And they were private loans for proprietary schools, career schools. That article is February 2008. If these students are subprime bad credit risks, which the article says, then I don’t want my tax dollars going to grants to send them to cooking school. There is no justification for destroying everyone else’s ability to finance their education over this.</p>
<p>fwiw - I find it hard to believe the evil “they” are just targeting minorities. I have 3 college students now and I get this stuff in the mailbox every single day. It’s as bad as the constant bombardment of credit card and regular loan offers. Usually I wind up throwing away 1/2 my mail every day with all this junk. I suggest your students do the same thing.</p>