Dems fight to attach student loan reform to budget – Education – Salon.com.
The student loan reform removes a subsidy for banks to provide student loans. The federal government currently backs the loans while banks markets and services the loan. Banks assume no risk. The legislation allows the government to provide loans directly cutting out the banks. The banks naturally hate that idea.
While listening to some of the final arguments about health care reform, I heard a new bit of ass-hattery. A GOP Congressman (I can´t recall the congresscritter´s name) was trying argue that were taking money from students to finance health care reform. The student loan part of the reconciliation package removes banks from the equation and increases the Pell Grant program with part of the savings. $10 billion of the $61 billion in saving goes towards deficit reduction, the rest to increasing Pell Grants.
Grasping at straws, I suppose. The vote should happen in just a few minutes.
