As the market continues to collapse banks and other organizations have severely reduced lending. Now, with upwards of 700 billion dollars being funneled into the financial industry, Treasury Secretary Paulson announced that some of that money could be used to promote liquidity in the student loan market by subsidizing private lenders, including those who provide student loans. The proposal was formally contested by a number of advocacy groups, including the U.S. Public Interest Research Groups, the United States Student Association, the National Consumer Law Center and the Project on Student Debt. Critics of the plan say that bailing out the very flawed student loan industry without any real oversight will allow predatory lending practices to continue. 

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