Why would the Democrat majority in the house of representatives want virtually all persons needing financial aid for a college education have to go to the government to get that financial aid?
Beyond the obvious, patron/client relationship which that situation promotes, are there any other outcomes, like influencing educational priorities, choices, and the selection of career fields by applicants....or even a government bureaucracy (part of the Party of Government) deciding who will get such aid in the future?
Obama Plans Government Takeover of Student Loans - WSJ.com
QUOTE:
“The furor over President Obama's trillion-dollar restructuring of American health care has left his [OTHER] trillion-dollar plan starved for attention.
That's how much the federal balance sheet will expand over the next decade if Mr. Obama can convince Congress to approve his pending takeover of the student-loan market.
The Obama plan calls for the U.S. Department of Education to move from its current 20% share of the student-loan origination market to 80% on July 1, 2010, when private lenders will be barred from making government-guaranteed loans. The remaining 20% of the market that is now completely private will likely shrink further as lenders try to comply with regulations Congress created last year. Starting next summer, taxpayers will have to put up roughly $100 billion per year to lend to students.”
<SNIP>
“It's not a popular idea on campus. Loans directly from the feds have been available for decades, but the government's poor customer service has resulted in most borrowers choosing private lenders.”
Student Aid and Fiscal Responsibility Act - PDF
This bill has been passed in the House on a roll call vote (Aye D-247-D R-6; No D-4 R-167). The bill now goes on to be voted on in the Senate. Keep in mind that debate may be taking place on a companion bill in the Senate, rather than on this particular bill.
Beyond the obvious, patron/client relationship which that situation promotes, are there any other outcomes, like influencing educational priorities, choices, and the selection of career fields by applicants....or even a government bureaucracy (part of the Party of Government) deciding who will get such aid in the future?
Obama Plans Government Takeover of Student Loans - WSJ.com
QUOTE:
“The furor over President Obama's trillion-dollar restructuring of American health care has left his [OTHER] trillion-dollar plan starved for attention.
That's how much the federal balance sheet will expand over the next decade if Mr. Obama can convince Congress to approve his pending takeover of the student-loan market.
The Obama plan calls for the U.S. Department of Education to move from its current 20% share of the student-loan origination market to 80% on July 1, 2010, when private lenders will be barred from making government-guaranteed loans. The remaining 20% of the market that is now completely private will likely shrink further as lenders try to comply with regulations Congress created last year. Starting next summer, taxpayers will have to put up roughly $100 billion per year to lend to students.”
<SNIP>
“It's not a popular idea on campus. Loans directly from the feds have been available for decades, but the government's poor customer service has resulted in most borrowers choosing private lenders.”
Student Aid and Fiscal Responsibility Act - PDF
This bill has been passed in the House on a roll call vote (Aye D-247-D R-6; No D-4 R-167). The bill now goes on to be voted on in the Senate. Keep in mind that debate may be taking place on a companion bill in the Senate, rather than on this particular bill.
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/end sarcasm
