Grandstanders like Andrew Cuomo would have you believe that all student loan lenders are corrupt. He delights in circulating press releases about how many institutions he’s talking to about student loan lenders. His “investigation” has gone far afield, and while it may grab headlines, he’s an obvious shill for the Congressional Democrats’ agenda.

The truth is that most FFELP lenders are not corrupt, greedy corporations involved in back-room deals designed to snare unsuspecting students into a lifetime of insurmountable debt. Most FFELP lenders are local and regional banks, and non-profit loan agencies established to meet the higher-education financing needs of students in a particular state. In some cases, FFELP lenders are distinguished national corporations that have served the lending needs of individuals and businesses, and provide federal and private student loans as some products in their large lending portfolios.

It’s very easy for Andrew Cuomo to demonize lenders on his McCarthy-esque crusade, but the reforms passed by Congress will trigger some truly frightening consequences. Most current FFELP lenders will no longer provide student loans. This fact, by itself, should scare you. Why?

2007 marks the first time in 15 years that Congress has increased the lending and grant caps for federal student assistance. I’m sure that “saved” a lot of money, but Congress didn’t cap increases in tuition, so the cost of going to college has gone through the roof. Congress’ refusal to adjust the Federal financial aid caps meant that students had to find the money somewhere. They turned to FFELP lenders for assistance and the FFELP lenders came through. If Congress nods off again for 15 years, and forgets to (or refuses to) increase the lifetime lending caps on federal student loans and grants, you could find yourself screwed right out of a college education.

The reliability of the FFEL program is going to change under Congress’ new plan. Students have no guarantees that the funding Congress will provide will be sufficient to help them through college, and most FFEL program lenders won’t be around to help, if Congress gets its way. Students who can’t find the money to get through a degree may be forced to extend their studies by dropping down to part-time status, which may trigger loan repayment terms and make it exceedingly difficult or impossible to finish a degree.

Students might also look toward more risky loan products to finance their college education, which could raise the total amount of debt a student owes. Parents may be forced to take on additional debt, and may end up paying off more expensive student loans they’ve co-signed for their children, if their children can’t or don’t pay back their loans.

In all, Congress’ deal is a bad one for student borrowers and their families. Tell your representatives in Congress that you’re not interested in a program that destabilizes the funding mechanism you’ve come to know and trust.