One thing jumped out at me from that story about EduCap Kathyrn linked to in her post about Tom Daschle:

Loan industry watchdogs question whether the company, EduCap, operates in the best interests of students and should retain its nonprofit status. As a nonprofit, EduCap is exempt from paying federal income tax as long as it claims to be serving a public good. But the company allows some students to borrow up to $50,000 a year, sometimes at 18 percent effective interest rates — terms that most financial experts urge borrowers to avoid. The Internal Revenue Service has been reviewing the business.

Back on the campaign trail last year, I reported Hillary Clinton was fond of telling this anecdote in her stump speech:

She tells perfectly punctuated stories of heartbreak like the guy whose insurance company dropped him, forcing him to spend his life savings on surgery or the young person she met recently in Minnesota who’s paying 27 percent interest on her student loans.

At the time, I thought Senator Clinton’s story strained credulity because 1) who would be foolish enough to pay credit card interest rates on a student loans, and 2) who could get away with charging such confiscatory rates?

As for the first question, I guess a fool and his money are soon parted and the American education system is producing its share of fools. But as for the second question, Hillary Clinton and and other Democratic politicians outraged about student loans now know where to assign some of the blame: major Democratic donors and the former-Democratic-minority-leaders-turned-lobbyists who enable them.