government is taking action to force the private sector out of student loans. ah, but we are assured the same government intervention wouldn't force private health insurers out of that sector of the economy. that is turning into as big a lie as "the government option is needed to create competition", which is actually infantile in its foolishness.
this one was telegraphed, though. michelle obama seemed bitter that that the obama's had "just a few years ago" paid off their student loans, and how that was an extreme social wrong.
House passes big change in college loan programWASHINGTON BUREAU - The House on Thursday passed legislation that would make the biggest changes in federal student loans in decades, driving private banks out of the business and leaving it to an existing federal program to provide that crucial source of college financing.
The bill, passed on a party-line vote of 253-171, would save $87 billion over ten years by abolishing subsidies to banks that have been criticized as excessive, supporters said. Most of the money saved would be channeled to increases in Pell Grants for low-income students.
``The choice before us is clear,'' said Rep. George Miller (D-Calif.), lead sponsor of the bill. ``We can either keep sending these subsidies to banks, or we can start sending them directly to students.''
Below are some questions and answers about the legislation, which must still pass the Senate:
How will the bill affect student loan recipients?
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