Bailout Back and Forth

Treasury Secretary Henry Paulson set off a flurry of activity when he suggested last week that some of the $700 billion bailout money might go to help companies issue private student loans. Higher Ed Watch explains in this post why Paulson's plan is a bad idea.

NASFAA (the National Association of Student Financial Aid Administrators), though, seems to think it's a great idea, saying that "stricter loan eligibility requirements and higher interest rates and fees on non-federal loans are jeopardizing educational opportunity." A letter sent Wednesday from representatives of colleges, students, and organizations like the Project on Student debt explains why NASFAA is wrong, and Higher Ed Watch explains what colleges can do to ensure educational opportunity without any government bailouts. Inside Higher Ed has all the back and forth here.

But while everyone has been talking about private loan eligibility, one of the biggest, most genuine threats to college access--reductions in public college funding--has actually been happening. The California State University system got approval on Wednesday to turn away at least 10,000 eligible students next fall because of overcrowding and underfunding.