To the Editor:
Re “Disclosure to Student Borrowers” (editorial, April 8):
The critical fact that the editorial left out is that the federal government is responsible for roughly 93 percent, or $114 billion, of the student loans estimated to be made for the 2011-12 academic year. Less than 7 percent, approximately $8 billion, are private student loans.
The editorial also suggests that private lenders are misleading students. Not so. Private lenders are already required to tell potential borrowers about their federal loan options, a requirement passed into law in 2008. Private lenders now make 18 different federally mandated disclosures three separate times before issuing a private loan to a student.
If Senators Richard J. Durbin and Tom Harkin seriously want to address the problem of excessive student debt, they should do something about the 93 percent.
Consumer Bankers Association
Washington, April 9, 2012