The Federal Government has found a new theme song in Bill Withers’ classic “Ain’t No Sunshine.”  A few weeks ago, the House passed the Student Loan Sunshine Act. The bill requires lenders to disclose any financial relationships it has with any schools.  But, in a move of hypocrisy the bill exempts the Federal Direct Loan Program from the same requirements.  So, sunshine is apparently good for private lenders, but not for the government.  Riiiiiight.

Since its inception in 1993, the FDLP has lost billions of dollars and many colleges have opted out of the program because of poor customer service.  The question at the heart of the matter is: Who is best suited to handle student loans, the private sector or the government? I’d argue that the private sector is more efficient in almost all circumstances.  But even if you disagree with me, what’s the harm in having the same sunshine standards for private lenders and the government?  If their program is so great, they shouldn’t have anything to be afraid of.