Stop the unfairness in the student loan system by refusing to allow the banks to be the middle-man between the government and the students.
Why is this important?
The government loans low interest rate money to the banks and asks them to loan it to students. The money comes with a guarantee that if the student defaults the government will repay the banks in full. Even though there is no risk to the banks from this transaction, they profit by charging students high interest rates (up to 8%). Canada, by comparison, loans the money directly to students and offers an interest rate of approximately 1%. The Canadian system benefits the students and the taxpayers. The US system benefits the banks at the expense of the student and the taxpayers. The US system is unfair to both students and taxpayers. We urge you to pass legislation to eliminate the banks from the student loan system.
