If you believe the recent blitz of student debt coverage, private student lenders are to blame for the economic woes of recent college graduates. Lending at what is seen to be excessively high interest rates, the pressure on private lenders to restructure student loans, even at the expense of public funds, is rising. At the same time, the government is taking concrete actions to squeeze private lenders out of the student loan market. Most recently, Senator Elizabeth Warren followed in President Obama’s footsteps by proposing to peg student loan interest rates to the government’s historically low borrowing costs.
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