This article in the Washington Post certainly seems like an example of banks wanting to have their cake and eat it too. Here’s the choice part:
Currently, they can choose between direct lending and a federal program that guarantees student loans made by private banks. The bill would not affect nonfederal loans.
By cutting banks out of the equation, the administration expects to reap $80 billion over the next decade for increased student aid, community colleges, early childhood education and other programs. Those funding estimates, however, are being questioned because they are several months old.
Prominent players in the lending industry, including Sallie Mae, oppose the legislation, saying that it will eliminate thousands of jobs and that there are ways to save the government money without shutting out private lenders. Republicans depict themselves as defenders of market competition.
Hmm…the banks don’t want the government to pull their guarantee of this debt, but just want to make all the profit. And, naturally, they’re worried about being cut out of the process entirely. Hmm…I’m not feeling too sympathetic. Try not to throw up as you read about Sallie Mae here.