Group Urges Paulson to Hold Off on Bailout Funds

AACRAO, NACAC, and other student interest groups are speaking out against a plan by Treasury Secretary Henry Paulson to use funds from the $700 billion financial bailout package approved by Congress in September to shore up the private student loan sector.
"Most students don’t use these student loans to pay for college, they are more risky and expensive than federal loans, and they already enjoy special treatment in bankruptcy at the expense of borrowers," writes Edie Irons of The Project on Student Debt. "Instead of helping lenders continue making these dangerous loans, we are urging Paulson to use taxpayer dollars in ways that better serve students and consumers."
Signers include the American Association of Collegiate Registrars and Admissions Officers, American Association of State Colleges and Universities, Consumers Union, The Project on Student Debt, National Association for College Admission Counseling, and United States Students Association and others.
Read the letter here.