In these dismal economic times, Gov. Arnold Schwarzenegger has likened selling state assets to holding a garage sale to pay bills.And people wonder why we conservatives believe in a limited government with enumerated powers. I don't see anything in the US Constitution pertaining to education in general or to student loans in particular.
But in the case of EdFund, a student-loan guarantor once expected to raise $1 billion, his administration may have been trying to unload someone else's car.
In letters obtained by The Bee, the U.S. Department of Education earlier this year expressed concerns that the state was trying to sell EdFund's student-loan portfolio despite the fact that it belongs to the federal government, not California.
Last week, the Department of Education said it would block such a transaction by the state. It then went one step further, saying it would close Rancho Cordova-based EdFund by the end of October and choose a replacement guarantor on its own.
In a five-page letter, William J. Taggart, chief operating officer for the Department of Education's Office of Student Aid, cited fights between EdFund and the California Student Aid Commission, as well as attempts by the state to sell something it does not own.
Read more: http://www.sacbee.com/2010/07/31/2927246/us-vows-to-block-californias-sale.html#ixzz0vJ3Pr2hJ
Saturday, July 31, 2010
More Screwed Up Government
Who owns EdFund--the state of California, or the feds? There seems to be some controversy about this.