Politics are pretty funny when you compare results fs promises.

Let’s take good old Mr, Kennedy. He promised to help students by providing grant money that would be obtained by cutting subsidies to Federal Studnet loan Providers. This program was suppose to be great becaeu it wouldn’t cost taxpayers a dime.

Let see the reality. Not only have lenders closed their doors and decreased teh amoutn of competition they have also eliminated many borrwer beenfits that went back to reducing the costs for those who borrower.

Now lets’s see how the governemtn has to then react
T
he chairmen offer Secretary Spellings suggestions on how to prepare for a worst-case scenario. If markets do not improve in the coming weeks, most lenders will find it difficult to raise enough capital to meet peak demand next fall. That scenario seems unlikely given the soundness of federal student loan securitization and bond deals that are generally viewed as some of the safest investments around, according to Federal Reserve Chairman Ben Bernanke. But should the markets – and lenders’ situation – worsen, the chairmen suggest the Secretary be prepared to use lender of last resort provisions, including ADVANCING CASH to guaranty agencies to allow them to make loans directly to students.

WOW sort of seems like a cost to me. Politicians are such idiots. So easy to see this was going to be a result of their magical promises.