Student Loan Doings

Read the report here in the Washington Post about what looks to be a deal in the Senate on setting and capping student loan interest rates. A good deal for borrowers at the margins but it doesn't address the serious problems on which I've posted here and here. The continued two-fold subsidization of borrowing for higher education aren't addressed. The student loan bubble won't go away until the federal government quits guaranteeing private student loan lenders the full amounts of their loans and puts some teeth into cutting off institutions that deliver nothing marketable to their students. And permitting folks to discharge their student loans in bankruptcy after the other two changes have been made would also help.