The New Report on Private Student Loans

by George Leef

The Department of Education has just released a report that blames private lenders for the woes that many students are facing. Neal McCluskey of the Cato Institute writes here that it’s ironic, since the 800-pound gorilla that the report ignores is the enormous federal student-lending program.

Neal observes the similarity between the housing bubble and the mounting troubles with student loans — the federal government was at the root of the problem, but attempts to divert blame by scolding the private sector.