In a conference call with reporters recently, Secretary of Education Margaret Spellings outlined a plan to provide additional oversight to student loan lenders. Ed’s plans include meeting with other representatives from other Federal agencies, such as the FDIC and the FTC. She also stated that Ed was in a “fact-finding” phase.

Ed is supposed to be supplying oversight to the student loan lenders right now. The questionable practices of a few student loan lenders arose under the watchful eye of Ed. Ed never said a word about these practices, never raised a single concern, never issued a warning, made a regulation, or investigated a single lender, even though Ed is vested with this authority, and frankly, it’s Ed’s job.

After all of the media coverage, investigations and even action by Congress, Spellings’ announcement that Ed is “fact-finding” goes beyond the pale, straight into the theater of the absurd. This is the agency that Congress has tapped to oversee the newly increased responsibilities of the Federal Direct Lending Program. You know, the one that Congress thinks will do a better job of managing the student loan program than private lenders will do?

The vast majority of FFELP lenders are honest, dependable to a fault, and provide the best possible lending terms and servicing programs to their borrowers. FFELP lenders have proudly served this country and its students for more than 40 years. It’s unfortunate that the actions of a few rogue lenders have tainted the reputations and the contributions of the FFELP lenders who have delivered service, convenience, and competitive loan products to America’s college population since Lyndon Johnson was in the White House.

In some ways, Ed has contributed significantly to the problems by failing to provide adequate advice and guidance to both borrowers and lenders, regulation of participants and sanctions against lenders who have abused the system. It’s not that Ed doesn’t have the power to make regulations; all Federal government agencies have basic regulatory powers in the absence of legislative direction. Ed could have done something to correct these problems, and instead, chose to do nothing.

Congress rewards this failure and lack of accountability by giving more responsibility to a slow, unresponsive agency that can’t even manage its own lending program properly. This approach shows just how far out of touch with reality Congress is. One of the real problems is that Ed isn’t providing oversight – so fix the real problem. Fix Ed and stop blaming honest, fair and diligent FFELP lenders who work within the program rules.

Tell your representatives in Congress that the real problem is that Ed is asleep at the switch. Honest FFELP lenders will have no problem cooperating fully with reform. They have already shown their willingness to correct improper or questionable lending practices without legislation. Once Ed starts providing real oversight, borrowers, lenders, politicians and the public will see real reform in student loan lending.