That said, Mr. Morris is making a lot of sense when it comes supporting President Obama's plan for student loans. The President called for a 100 percent direct-lending program that would take student lending out of the hands of banks and set up direct lending between the Federal Government and individuals.
The upshot is that the Feds stand to save around the neighborhood of $100 billion by cutting out the middleman vested in private lenders. The federal government already subsidizes the banks' lending, and guarantees the loans they dole out. Removing the banks would do little more than strip their ability to charge government for handling the program. It would also create a 'quasi-entitlement' for needy students who would be guaranteed some type of loan to cover the costs of their education. Suffice it to say, President Obama has had worse ideas.
Dick Morris's column explains the private lending process and outlines some of its more nefarious aspects - including the utter ruthlessness of private loan officers and collections agencies.
As a current student with much future debt on the horizon, for once, I am glad to support this aspect of the President's agenda.