Mitt Romney’s student loan plan criticized
Would allow private lenders back into market
As president, Mitt Romney promises to usher private lenders back into the federal student loan market, a lucrative industry that has come under intense scrutiny in recent years because of skyrocketing tuition and questionable practices by some lenders. But the move would cost taxpayers tens of billions of dollars more over a decade without lowering interest rates for students, according to higher education analysts. The prime beneficiaries, critics say, would be student loan companies that stand to reap a financial boon for making virtually risk-free, government-backed loans.