Congress Destroys Student Loan Market

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Last year Congress cracked down on banks making too big a profit off of student loans. Democrats were delighted to stop rapacious lenders like SLMA from taking a pound of flesh from America’s students. Speaker Pelosi was so proud of the bill that she even convened a photo-op intended to make it look like a presidential signing ceremony, and then instructed people to applaud (around 1:56). The only problem with slashing the rate of return on student loans? Lenders are now losing money hand over fist. Sallie Mae continues to write loans in the hopes that Congress fixes the mess it created, but many other banks have dropped the business entirely. Congress is frantically trying to enact a fix before May, when many college-bound students will be submitting loan applications. But rather than admit their error and repeal the bad bill they passed last year, Democrats in Congress are getting ready to craft a bill that provides taxpayer subsidies to hurting lenders:

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