jump to navigation

Student Loans February 8, 2010

Posted by Dwight Furrow in Dwight Furrow's Posts, politics.
Tags: ,
add a comment

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.

book-section-book-cover2 Dwight Furrow is author of

Reviving the Left: The Need to Restore Liberal Values in America

For political commentary by Dwight Furrow visit: www.revivingliberalism.com

Advertisements

Progress on Student Loan Reform April 27, 2009

Posted by Dwight Furrow in Current Events, Dwight Furrow's Posts, politics.
Tags: , ,
2 comments

I argued recently that reforming our bone-headed student loan program may face an uphill battle in congress due to opposition from Republicans and conservative Democrats, who want the banking industry to take a middleman’s cut while providing no essential service.

Reforming the health care system may be difficult for the very same reason. The Republicans will filibuster the reform in order to protect insurance company profits and a few conservative Democrats will likely vote with them.

But there was some promising news last week.

Democrats voted to use the budget reconciliation process if bi-partisan reform bills cannot be passed, which will prevent Republicans from filibustering both bills. There is probably enough Democratic support to pass both bills without conservative support.