Stop the Student Loan Bailout

Last week U.S. Treasury Secretary Henry Paulson announced a plan to prop up private student loan providers as part of the $700 billion dollar economic bailout package. Yesterday we and eight other national organizations representing students, consumers, colleges, administrators, and others sent a letter to Secretary Paulson urging him to reconsider.

Most students and families do not use private student loans to pay for college, nor should they. Private loans are risky and expensive, and they lack the important consumer protections and repayment options that come with federal student loans. Providers of private student loans already receive special treatment in bankruptcy at borrowers’ expense. Taxpayer dollars should not go towards helping lenders make these high-risk loans.

Write your own letter to Secretary Paulson urging him to stop the bailout of private student loan providers

Read the letter we sent to Secretary Paulson

(This message was sent to the Project on Student Debt mailing list on November 20, 2008.)