Student advocacy groups are urging the Treasury Department to prevent a new $200 billion consumer lending program from benefiting private student lenders, which they say are largely unregulated and prey on students with risky, high-interest loans.
The program, announced this week and developed by the Treasury and Federal Reserve, is not aimed specifically at the student loan market. Its much broader goal is to encourage lending to consumers — including car loans, credit card debt and student loans — as well as help the financial system by increasing liquidity in the credit markets.