Not free money (grants); it’s a loan and has to be repaid.
The issue is WHERE the students/parents apply for the federal loan dollars. The bank is a middleman passing through govt. funds. Govt is subsidizing interest while the student is in college so private banks are getting free business...O wants to service all the govt. loans; as the originator of the cash, payor of the $14 billion in loans’ interest subsidy, I’m not sure why “we the people” shouldn’t service our federal aid we funded through taxes.
“it’s a loan and has to be repaid.”
Student Loans: Default Rates Are Soaring :
http://online.wsj.com/article/SB124027600001437467.html