Under Trump, Student Lenders Get a Chance to Cut Loose
Less regulation, sure. But the big prize is reducing the feds’ role.
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The student loan business got a lot tougher during President Barack Obama’s time in the White House. The victory of Donald Trump and congressional Republicans promises to turn that around dramatically.
In 2010, Obama and a Democratic-controlled Congress ended a program wherein banks and private lenders made government-backed student loans. The banks earned fees and interest payments while the feds bore the cost of defaults. Under a new law, the government alone would make those loans directly.