Leftists frequently denounce firms that lend money to people with poor credit histories as “predatory lenders.” Pay-day lending, for example, is attacked as “predatory” because the borrowers face high interest costs when they need money. Those firms, however, are just offering customers an option and if they have a better way of obtaining the money they need, they’re free to do so.

Now, the federal government is engaged in something quite similar when it comes to Parent PLUS loans — loans to parents so they can cover college expenses beyond the other loans and grants available. The administration has just announced that it will loosen the credit requirements for these loans, enabling families with weak credit to borrow so their children can go to college. Inside Higher Ed has the story.

This is just like the way the government “helped” low-income, poor-credit-risk individuals qualify for mortgages. Many of the parents who might have previously realized that the college of their choice was too expensive and therefore looked for a less costly school will now be lured into taking on debt they will have a hard time dealing with in the future. In a few years, we’ll have a “crisis” on our hands and the political response will be to bail out parents who imprudently took out these loans. This move just helps inflate the higher ed bubble a bit more; a few colleges will benefit for a while, but the taxpayers will wind up with a larger bill in the end.