New York Times Takes On Your College President

Check out the New York Times editorial that chastizes the Washington college groups (largely controlled by college presidents) for "shilling" for the loan industry and failing to advocate in the best interests of students and would-be students.

The specific charge is that schools are failing to support a bill that would provide billions more for college aid because it would create new choices (for schools) that might threaten the often cosy relationship they have with lenders.

Right now schools can work with lenders to get a big kick back for making the federal loans direcltly and then selling them off to a lender. Under the STAR Act (pdf), schools who use the cheaper Direct Loan program would have the savings passed on to students. Pretty clear choice: Kickback to schools or kickback to students (and some for deficit reduction because it is taxpayers money).

Students are one oneside with bipartisan sponsors for their bill. Lenders and schools are on the other.

I am outraged that college presidents are increasingly looking out for their own self interest rather than the broader public interest. Indeed they have been busy recently praising the House version of the Higher Education Act because it provides them some regulatory relief and haven't joined with student organizations that oppose the bill because it actually will make it harder to go to college.

Look, this is Washington and these college presidents gotta do what they gotta do. The squeeze is on for higher education and college presidents get to decide who gets in to the life boat first.