<h2>The non profits are getting it from both sides. The neo-socialists such as Pelosi and Kennedy and the neo-con-corporatists such as the lobbyists for SMC and Nelnet. </h2>
<h2> About 15 years ago an essayist wrote that political distinctions between left and right would no longer matter in the US except for trivial symbolic categorization. The basic concept was that our elite bore striking resemblance to the French court after Louis 14th. Essentially like them, for our elites the court itself has become an end in itself not mattering if any of it serves a genuine function beyond enrichment of those at court. The reason is, he stated, was that our elite classes have lost any sense of obligation to society as a whole. In that type of a situation such as non profit student loan lenders don’t stand a chance…and the motivations of such as Kennedy, Pelosi or the Lobbyists for the controlling loan companies don’t even have the lingering credibility of noblesse oblige. And as such its not a matter of whether student’s are better served or the system actually works well (it doesn’t)…its simply a dispute over which entity controls this system-corporate agendas or governmental agendas. </h2>
<p>And even if the bond people and investors and loan companies do recoup their investments…it still does not negate the fact that 540 some billion whether it is residing in the bonds, guarantee or lenders aspects of the SL swamp… would have been better directed to the productive economy and especially to the consumer aspects of that economy. 540 billion would have produced and bought a lot of cars, computers, homes and etc. One of the aspects that Dr. Warren and others have routinely commented upon is how the transformation to a debt economy (of which all the players in the SL industry are a seminal part) has been instrumental in the decline of the middle classes. </p>
<h2>Its one of the reasons that other countries which do not use our system of educational funding generally have overall higher standards of living then we now do. They haven’t bound their middle classes (often the most inventive and ambitious of any society) to debt bondage for wishing to posses the education to be ambitious, inventive and intelligent. It could be argued that’s one of the reasons we drive German or Japanese cars, our homes are filled with Korean or Japanese electronics…is that too much of the energy and resources of our classes which invent and produce these things are compromised by debt…including educational loans. </h2>
<p>And yes Ted and Nancy do intend to drive these companies under, but we have to remember that in large part the entire industry only exists because of governmental fiat and support. </p>
<h2>So its not like any of the current educational funding system is something which could be justified as private enterprise. It largely exists because of government fiat and support and as such can be sent out of existence when that same government decides on another agenda.</h2>