Tuesday, September 25, 2007

Regarding Michael Kinsley's Sept. 15 op-ed column, "The Wacky World of Student Loans":

The federal government sought out lender participation in developing a public-private partnership for student loans more than 40 years ago. The Federal Family Education Loan (FFEL) Program has, in fact, worked to put millions of students through school. Shifting a large lending program from private-sector lenders to a federal government monopoly would give the Education Department a job it doesn't want and is ill-equipped to handle. Failure would be catastrophic for the 6 million students who depend on FFEL loans.

Loans to students who have no way in the near future to repay them and who would otherwise be denied access to higher education are among the many contributions this public-private partnership has brought to our youth and our economy. This doesn't happen by chance. Higher college enrollments and a near-record-low default rate of 4.5 percent are due to FFEL lenders and guaranty agencies that provide borrower benefits, strong customer support and diligent dedication to students' financial literacy.

Student loan providers continue to be vilified without validity, maligned without substantiation and attacked by critics who ignore the realities of a working student loan system. Public servants armed with the right to propose legislation that will ultimately harm rather than help millions of students and their families are doing them a costly disservice.

JOE BELEW

President

Consumer Bankers Association

Washington