Talk about a waste of money. This is from the party of fiscal responsibility. You know, the same people who spent a budget surplus and created structural deficits while fighting a multi-front war of choice. The same people who say that we can’t afford health care reform that would cost a fraction of the tax breaks that they gave to the wealthiest Americans:
…the Republican leadership in Congress is opposing a House bill that would save the country nearly $90 billion in the next decade by ending this program and allowing students to borrow directly from the government through colleges.
The subsidy program was created when lenders were showing little interest in the college loan program and was intended to make sure that young people could get loans when times were tough. This expensive strategy failed outright during the credit crunch when the federal government had to buy outstanding loans to keep new loans available to students. The direct lending system, which was already known to be cheaper, needed no such rescue.
