Economist Richard Vedder, who serves on the federal Higher Education Commission, has just reported a disturbing development concerning the third draft of the commission’s report. Vedder writes that commission chair:
…Charles Miller had…noted [in the draft] the positive role played by the private, unsubsidized lending market. He noted that “a private sector education lending market has fully developed (separate and distinct from loans subsidized by the federal government and made by private financial institutions)” and added, “The Commission notes that wider recognition and wider utilization of these options by many families would result in the private sector providing more funding for higher education and in freeing scarce public funds on aid for economically disadvantaged students and families.”
…Now Mr. Miller has told commissioners he wants that last sentence sentence removed. Why? Apparently pressure from the student loan community, broadly defined. If the Commission bows to political pressure even before they vote, how can they be the slightest bit effective in pushing for the implementation of their already rather mild, non-radical reforms?