Banks Fighting Federal Student Loan Overhauls

Sep 21, 09 Banks Fighting Federal Student Loan Overhauls
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It should come as no surprise that banks are fighting the new student loan overhaul bill tooth and nail.  At issue is what President Obama, and others, describe as an unwarranted subsidy.

The banks receive a substantial federal subsidy for providing loans to college students.  Instead of having the banks lend to students and take the subsidy, the federal government would lend directly to students.

This bill recently passed the House of Representatives on September 17, 2009.  If it passes the Senate, the bill is expected to generate $87 billion dollars in savings for the government.  However, advocates expect the bill to have a much tougher chance in the Senate, as many Republicans and a few Democrats have already come out against it.

I don’t know.  A bill that eliminates waste, makes loans easier for students to get, and has the broad support of a majority of Congress…of course they want to kill it.  The banking industry has thrown down the gauntlet in the Senate as they are determined to make sure the bill does not pass.

This is another example of the people electing representatives to make positive changes in government and having their efforts thwarted by a few bought-and-paid- for, morally bankrupt politicians.  It makes me wonder, if Congress can’t a bill this easy passed, what hope is there for healthcare?

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