I totally agree with you regarding private student loans and the leader of that pack, Sallie Mae. How can our government allow student loans that prey on our young adults? This is predatory lending at its finest. All consumer protections, including the right to bankrupt a private consumer loan (such as a private student loan), removal of Statute of Limitations, waiver of Fair Debt Collection Practices, removal of usury protections,etc., have been removed, courtesy of Congress. It is the only private consumer loan in the country that is void of standard consumer protections. Of course, we all know the answer....to pander to lobbyists and protect their campaign contributors. We should demand that these rights be restored and stop putting up with the nonsense that Congress shells out at the peril of young Americans. I am ashamed of Congress for this mess and I demand they correct this for all students, including the ones who have already finished school and are straddled with a predatory loan. In the old days, if you made the mess, you were required to do whatever was necessary to clear up your mess. Well, Congress, this is your mess - clean it up !!!

I'm not a fan of the FFELP, but as far as interest rates go, the FFELP interest rates and the Direct Loan interest rates are exactly the same for students. Where there's a difference is the ParentPLUS loans. The Direct Loan program charges 7.9% for these and the FFELP charges 8.5%. And lenders do not set any of these federal loan rates- Congress does.
http://www.collegeloanconsultant.com/direct-federal-student-loan.html