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Apr 16 / Jonathan

Keep an eye on Sallie Mae

Keep an eye on student-loan reform for a great example of crony capitalism at work. The first two names are Republicans, but I think we can expect bipartisanship at its best to keep those bucks flowing to the lenders. Matthew Yglesias:

Sallie Mae Thinks $17 Billion a Year in Giveaways to Banks is a Good Job-Creation Program

As I’ve had occasion to mention in the past, many legislators, including Representative Buck McKeon (R-CA) and Senator Judd Gregg (R-NH) have developed the curious notion that the essence of the free market is wasteful crony capitalist giveaways to private sector student lenders. That’s why they’re opposing an Obama administration initiative to end subsidies to private lenders and just lend the money directly, instead.

Today’s New York Times has an article on the lobbying frenzy that’s under way as private lenders try to keep their ill-gotten gains. …

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