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News Item February 2011 |
The law of supply and demand, a basic tenet of a free-market economy, has been broken deliberately by the Obama administration. The
Department of Education (ED) was enacted sweeping changes that greatly impact the supply side of the equation. In the biggest change
to the federal student loan program since its inception, the government eliminated the competition, making the ED the only source for
government-backed loans.
This was done despite the fact that a significant number of families opt for private-sector student loans through local lenders. In 2008, for example, 15 million students borrowed from non-governmental sources while only 4 million borrowed directly from the government. So much for the demand side of the equation. You can find additional information on this change and other ramifications in the December 2010 article of the Education Reporter entitled “Feds Overreach Into Higher Education." http://www.eagleforum.org/educate/2010/dec10/higher-ed.html 142 Words To view more 'News Items' Articles please 'Log In' and visit the 'Achives' page. |
