In response to some comments by readers, I am devoting this post to something great that President Obama has done. As part of the reconciliation bill that completed the health care reform, the student loan give away to the banks was eliminated. Senator Franken, the junior senator from Minnesota, sent out the following email message which says it all:
Passing health reform was an amazing accomplishment. The reconciliation bill President Obama just signed made a good bill even better, but today I want to talk about another new law that's been overshadowed a bit by health reform.I appreciate my readers comments. It is important that we take the time to celebrate all the good things that the Obama Administration is doing as well as holding President Obama accountable for his campaign promises.
Today Franni and I were honored to be there in person to watch the President sign sweeping federal student aid reform into law. We just cut out the big bank middlemen for federal student loans. Now aid to help kids afford college will come directly from the government.
This is a very, very good thing for students across the country. For the past 40 years under the old system, the federal government paid banks massive subsidies to get them to lend to students. On top of that, the government guaranteed the loans -- so there was no risk for banks, just loads of taxpayer-subsidized profits.
This was corporate welfare masquerading as private enterprise, and we just put a stop to it. For Minnesota students who already have direct lending from the U of M, we shored up Pell Grants for those at risk of having them cut by as much as 60%, or of losing them altogether.
For Franni and me, this issue is personal. She and her three sisters were all able to attend college on a combination of scholarships and Pell Grants after their mother was widowed when Franni was just a baby. So we know the power of America's middle class comes from being able to provide a bright future for kids, and that means a college education.
I came to Washington to fight for those who haven't had a voice on issues just like this one. Health reform is a great thing, but it's not the only bill that was signed into law today that will markedly improve the lives of our constituents and strengthen our middle class.
Thank you so much for reading. Today, America's students got a leg up - that's something we can all take a moment to celebrate. We've got more to do on this issue, and thanks to your steadfast support we're off to a running start.
Thanks for reading and please comment,
The Unabashed Liberal
Hi UL, fellow April blogger here...
ReplyDeleteI am so happy to have a political blog to read! I especially loved Franken's quote "So we know the power of America's middle class comes from being able to provide a bright future for kids, and that means a college education." (Though I wish he'd included the lower class too, because the power of America as a whole relies on the availability of secondary education for all citizens.)
Can't wait to keep reading...
Gina
Your dedication to your readers is really remarkable.
ReplyDeleteAnd, I like Gina's point about the lower class, as well.
A great day on this blog, for sure. Probably the best day ever. ;)
I personally don't see this as a good thing.
ReplyDelete1st off, why was it a part of a so-called health care bill?
2nd, why should the State be funding all student loans? Now, I do agree corporate welfare needs to end in every aspect, and having the Government subsidize & guarantee any loan is completely ridiculous. However, why didn't Congress take the opportunity to eliminate the subsidies & guarantees altogether, and force banks (big or otherwise) compete for the loans???
As it now the State will dictate rates, without checks &/or balances (for good or bad) for all student loans. What if they decide 3, 5 or 8% isn't sufficient? What if they decide loan rates will be 12%? Or 20? Or 33%?? Who will keep them in check?
Additionally, what if they decide you don't qualify for a loan? Who are you going to turn to for financial aid?
Whereas, liberals (in general) see the Government stepping in as a good (or even a great) thing, we conservatives see the Government getting out of the way as a best case scenario.
Have you ever considered, even for a moment, what would have happened all these years if the State had NOT guaranteed student loans and banks actually competed for the business (much like they would a car loan, for instance)? What's the possibility that students could have gotten even better rates that a standard, negotiated rate?
When competition exists, consumers benefit.
Sincerely,
Liberal Demise
I was pleased about the student aid reform.
ReplyDeleteI think Al is a good senator. Your lucky to have him.
Thanks for another great read, UL.
Dear Liberal Demise,
ReplyDeleteThank you for your comment. It is important to remember what Thomas Jefferson said over and over again that education is the key to a strong and sustainable democracy. One of my favorite quotes of Thomas Jefferson is "Whenever the people are well-informed, they can be trusted with their own government." This quote makes it clear that we need a well educated electorate and a independent free press. Without both a democracy cannot succeed.
In today's world, student loans are the only way that most of the American population can get a college degree. Banks, being profit based organizations, would not make loans to students who have no jobs or only jobs that could not support them without the government guarantees. In addition, there is nothing in any law that prohibits banks from competing for and making student loans, but don't hold your breath.
It is therefore incumbent on the government to ensure that its citizens can be educated in order for our democracy to succeed.
I should also point out that for our economy to grow and succeed we need an educated work force and without student loans we would fall even farther behind other nations where education is a strong national value.
The Unabashed Liberal