Last week we asked you to join us in opposing U.S. Treasury Secretary Henry Paulson's plan to spend part of the $700 billion dollar economic bailout package "rescuing" the private student loan industry. Yesterday, Paulson announced he would move forward with the proposal, creating a new loan authority for providers of private student loans as well as credit cards, car loans, and small business loans.
While we are disappointed by this decision, we will use it as an opportunity to raise awareness about the dangers of private student loans and push for stronger consumer protections. We need you to keep the pressure on and demand that any government bailout for lenders who make these risky, high-cost loans address the needs of borrowers as well.
Write to Secretary Paulson urging him not to sell out students while bailing out lenders.
(This message was sent to the Project on Student Debt mailing list on November 26, 2008.)