Aarthi Swaminathan

The Wall Street Journal’seditorial board(WSJ)
recently suggested that the Obama administration pulled off “the
biggest accounting fraud in history” with student loans when eliminating
the role of private lenders in the federal student lending market.

Experts who spoke with Yahoo Finance acknowledged the issue with the
general policy in hindsight, though they disagreed on who exactly is to
blame.

In 2010, Democrats “nationalized the market to help pay for Obama
Care,” WSJ asserted. “The Congressional Budget Office at the time
forecast that eliminating private lenders would save taxpayers $58 billion over 10 years. This estimate was pure fantasy, and now we’re seeing how much.”

The WSJ op-ed also highlighted the rising number ofseverely delinquent student loanssince
then and blamed the Obama administration for expanding plans in 2012
for new borrowers “to reduce defaults, buy off millennial voters and
disguise the cost of its student-loan…