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GOP Warns of a ‘Government Takeover’ of Student Lending
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| Contributor | RP |
| Last Edited | RP Mar 16, 2010 03:45pm |
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| Category | Proposed Legislation |
| Author | Mike Lillis |
| News Date | Tuesday, March 16, 2010 04:30:00 PM UTC0:0 |
| Description | A group of Republicans this afternoon will meet with reporters to protest the Democrats’ plans to eliminate tens of billions of dollars in government subsidies to private companies that lend to students. The Democrats’ bill would have students borrow directly from the U.S. Treasury, which makes sense to supporters because it’s the Treasury that currently assumes all the risk for those loans anyway — a boon to private companies that assume no risk. The Congressional Budget Office estimates that eliminating the private middleman will save $67 billion over the next decade, most of which will go toward expanding college scholarships to low-income students.
No matter. “Such a move,” the Republicans’ release claims, “is an abuse of the legislative process that will eliminate borrower choice and competition, destroy tens of thousands of jobs, and add to the country’s long-term debt.”
It’s worth noting that not all conservatives agree. In fact, President George W. Bush proposed similar reforms as part of his annual budget proposal during three years of his tenure. More recently, The Weekly Standard blasted the current system of guaranteed loans as “a textbook example of crony capitalism or (if you prefer) corporate socialism.” |
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