The Cost of a College Education
The Nov. 24 editorial "Shrinking Opportunities" was correct to state that in widening access to higher education, the larger issue is "how to make college more affordable." But in suggesting that student loan programs "end up enriching lenders at student expense," the editorial makes a blanket statement that doesn't measure up.
The federal student loan program is an American success story. Since 1965 it has helped 50 million Americans go to college, making close to $700 billion in loans--while adding relatively little to the national debt.
This year, lenders will make about half a penny or less on every new loan dollar, for which the public gets enormous value: Students with no income or credit history have a chance to go to college. They typically get better rates and lower fees than they would if they borrowed directly from the Education Department.
Many students also receive college awareness, financial aid, debt management and default avoidance counseling, all for free. Schools enjoy more responsive and efficient levels of service than the Education Department offers. Furthermore, student and parent borrowers get a choice of loan providers.
All in all, this public-private partnership has been a remarkable success.
KEVIN BRUNS
Executive Director
America's Student Loan Providers
Washington