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The loans and grants that were intended to give the common man a leg up are paying for the tuitions of the young and very privileged. In fact, almost 1/3 of the students whose parents earn six-figure salaries enjoy the benefits of financial aid. Weren’t those dollars intended for the other America?
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The dirty secret of student loans is that just like in housing, easy and low cost money helps to boost prices. In this case “prices” are the tuition and fees that colleges can levy knowing that the student doesn’t have to pay right away, but Uncle Sam does.

Agitating for easier student loans, with lower rates of interest and higher credit limits is just another way of agitating for a higher subsidy by the federal government.

The folks who work this system are horribly cynical and they get to enjoy it coming from many directions. They appear to only want to be helping poor students. They get more money. They get to lay the burden of repaying on both the future graduates (or dropouts, who cares about them?), or the taxpayers. And they get to beat up Bush if he even hints he will spill the beans about this scam. Best of all, they don’t have to contain costs, let alone increase productivity.

What a gravy train!