I had another thought earlier today. In yesterday’s blog I spoke about what is happening in the student loan industry as politicians are attempting to limit our freedoms by restricting access to the National Student Loan Data System (NSLDS). I mentioned that if this “lock-out” continues, it will severely restrict students’ ability to gain access to the funds they need for college.

Let’s play out that scenario a bit. Characteristically, the weeks leading up to July 1, 2007 are some of the busiest of the year. July 1 is the date when the government announces the new interest rate for student loans, which will likely increase this year on that date.

This is the time when millions of students rush to contact student loan companies to get the funds they need for the following school year—before interest rates rise. My guess is that for the month of June the resources of such independent loan companies are stretched to the limit. That’s really no big deal, but here’s what is:

Imagine trying to get the money you need when you’re battling millions of other college students all calling at the same time, and now you’re at the mercy of a federal government representative at the NSLDS. Keep in mind that you’re now REQUIRED to speak to them, and wait times are already 20 minutes just to get through.

Increase that by a factor of 10 in June when everyone’s at it. The government agents at the NSLDS will never be able to handle that volume. That means that you won’t get your money!

The result?
Not only will we have millions of incredibly angry students and their parents who could never get through to the NSLDS at the high call time in June, but, as a result, you’ll probably have hundreds of thousands who won’t be able to attend college next year.

And this is what our political leaders call reform? Scary thought …

A nightmare waiting to happen? Definitely.

Are we powerless to act? Definitely not.

Take action today by signing the student loan petition. Or better yet, call your state senators and let them know what you think.