Thomas E. Petri: “we'd just say that it's important for us to get informed, knowledgeable advice as to how to operate the student loan…”

“we'd just say that it's important for us to get informed, knowledgeable advice as to how to operate the student loan programs, the direct program, and the guarantee program better. In the past, we've adopted pretty much a political-based approach of Congress setting the amount of the guarantee that private lenders receive for making student loans. In the reform act this summer, we cut that and tried to put in place a pilot approach coming from the Senate for a market-based mechanism. This would broaden the study; and, I think, would, in fact, be something that will end up saving the taxpayer money if it works. And if it doesn't work, we're no worse off. It's a study. So I don't understand the reluctance to try to get the Treasury Department and experts in this area. We have auctions for loans weekly to finance the debt of our country. And we certainly can do a better job of pricing the guaranteed student loan program.”