Obama outlines student loan overhaul

Yale Daily News - Obama outlines student loan overhaul:

Several presidential candidates in recent weeks have suggested that they would change the structure of the federal financial aid system, either in an attempt to make college more affordable or to reduce government involvement in the aid system. But Obama, in a conference call with college reporters this week, made his position on the question of federal financial aid the loudest of all his competitors. He vowed to overhaul the aid system in order to curb corruption by eliminating the middleman between the federal government and students seeking loans.

“One way we can make college more affordable — because a lot of young people have been asking me about this on the campaign trail — is by reforming a wasteful system of student loans that benefits private banks at the cost of taxpayers,” Obama said. “Private lenders are costing America’s taxpayers more than 15 million dollars every day and provide no additional value except to the banks themselves. I think the system needs to be fixed.”