Pres. Obama takes on student loan industry -- and it's about time

Reporter David M. Herszenhorn reported in the New York Times April 12 about the brewing student loan clash in Congress:

The private student lending industry and its allies in Congress are maneuvering to thwart a plan by President Obama to end a subsidized loan program and redirect billions of dollars in bank profits to scholarships for needy students.

The plan is the main money-saving component of Mr. Obama’s education agenda, which includes a sweeping overhaul of financial aid programs. The Congressional
Budget Office says replacing subsidized loans made by private banks with direct government lending would save $94 billion over the next decade, money that Mr. Obama would use to expand Pell grants for the poorest students.

But the proposal has ignited one of the most fractious policy fights this year.

I'm backing Obama on this one. The private lending industry has abused our trust. The whole system is out of whack and we need a new -- and better -- one.