Student Loans February 8, 2010Posted by Dwight Furrow in Dwight Furrow's Posts, politics.
Tags: Republicans and budge deficit, student loan reform
The New York Times reports that the Obama Administration’s student-loan reform package is in jeopardy. A reform bill has passed the House of Representatives but it languishes in the Senate where the bank lobbyists hold court.
The reform is in trouble because of—Republican opposition. Who could have guessed?
The current student loan program is a government subsidy for banks. The government provides banks with money to lend to students and pays banks a fee for their trouble. The federal government also guarantees the loan so the banks incur no risk.
The proposed reform would simply have the government lend directly to students bypassing the banks altogether saving an estimated $87 Billion over ten years.
So Republicans who are constantly complaining about budget deficits are opposed to a simple idea that reduces the budget while enabling more students to attend school.
Anyone who thinks Republicans are genuinely concerned about budget deficits is a fool. They are fine with government spending as long as it is lining the pockets of private corporations.
For political commentary by Dwight Furrow visit: www.revivingliberalism.com