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<p>Thanks, JRZMom, for explaining.</p>
<p>I will add that BC liberalized the programs to encourage market competition on the model of Freddie/Fannie. GWB added his cronnies to the DOE. Congress allowed the system to continue to 10s of billions $$$$ until the D’s restructured the system in early 2006 and again in 2009. </p>
<p>Lenders were guaranteed by the DOE, 6.5% for stafford and 8.5% for PLUS and similar for consolidated. We won big as did the lenders, but the taxpayer is paying even more. Like I said, I tried to be Patriotic, in not borrowing as much as we could have.</p>