If the Obama administration has its way, the government could soon take over the student loan system. The move has been criticized by many people, including Lamar Alexander, the U.S. secretary of Education from 1991 to 1993.

The administration’s proposal is that from July, about 19 million students who seek government backed loans for education should apply directly to the U.S. Education Department. This is in stark contrast to the current system where students and their educational institutions exercise their choice in deciding on lenders. [Read more…]