Happy Thanksgiving

Higher Ed Watch is about to take the week off to celebrate Thanksgiving, and help ourselves to plenty of turkey, cranberry sauce, stuffing, and pumpkin pie. But before we do, here is a brief list of some things that we are especially thankful for:

• New leadership coming to the U.S. Department of Education that will hopefully close the revolving door between the agency and the student loan industry.

• Growing interest in redesigning the federal student aid programs to make them less complicated and more equitable. Over the last several months, both the College Board’s Rethinking Student Aid Study Group and the U.S. Department of Education have unveiled proposals for overhauling the system. While we don’t entirely agree with the details of either plan, we hope these efforts will spur policymakers to consider broad-scale reforms. The aim should be to design a coherent system that is efficient and targets aid to those students who need it most.

• The reliability of the federal Direct Student Loan program. Not only is the program more cost-effective for the government to run than the competing Federal Family Education Loan (FFEL) program but it is also free of the types of conflicts of interest that have plagued the bank-based program and led to the 9.5 percent and “pay for play” student loan scandals. At a time of great financial turmoil, it has been comforting for colleges and students to know that an alternative federal loan program exists that does not needlessly rely on the financial markets to ensure students receive loans.

• Increased protections for private student loan borrowers. As part of the Higher Education Act reauthorization legislation it passed this summer, Congress took some important steps to safeguard students. For example, the new law requires lenders to provide clearer information about the interest rates and fees they charge borrowers and to inform potential applicants about the availability of cheaper, safer federal loans. The measure also bans lenders from branding private loan products with a college’s name or logo on it. In addition, it forbids colleges from entering into “opportunity loan” deals with lenders — arrangements in which loan companies waive or loosen credit requirements on private student loans in exchange for becoming the exclusive provider of FFEL loans on a campus. While the new law doesn’t go far enough, it’s at least a good start at ending some of the worst practices that have harmed students.

But mostly we’re thankful for our loyal and spirited readership. Thanks for tuning in, and enjoy the holiday!