comments_image Comments  The emerging scandal over student
loans...  Robert Reich: The Real story.  The emerging scandal
over student loans - and finiancial aid administrators that have
cozy relationships with lenders - is only the tip of a
scandalous iceberg.   The first way is for the federal
government to lend students the money directly. Students get a
good deal because the government, being the government, can
raise funds at a lower interest rate than can banks or other
private lenders. The alternative is for the federal government
to subsidize student loans indirectly by guaranteeing banks and
other private lenders that if a student doesn't repay the loan,
the government will. The government also gives banks and private
lenders additional subsidies to ensure they get a profitable
return on any student loan they make.  Obviously, this second
alternative is a great deal for the banks and other lenders.
Hey, a guaranteed return on a no-risk loan! But it's a lousy
deal for American taxpayers. According to a