Barack Obama is serious about Education reform. Very serious, and much in his budget and stimulus is good for that end. It is not surprising therefore to find the powerful hand of private lenders attacking Obama's proposal to reform the student loan system.
According to The N. Y. Times:
The private student lending industry and its allies in Congress are maneuvering to thwart a plan by President Obama to end a subsidized loan program and redirect billions of dollars in bank profits to scholarships for needy students.
The plan is the main money-saving component of Mr. Obama’s education agenda, which includes a sweeping overhaul of financial aid programs. The Congressional Budget Office says replacing subsidized loans made by private banks with direct government lending would save $94 billion over the next decade, money that Mr. Obama would use to expand Pell grants for the poorest students.
What is the reason for this resistence? I'm sure the GOP and their conservative drones like Limbaugh and Hannity will say it is in the name of "freedom" against "socialism." They will sit proud in their delusions and continue to fight for their slavery to a broken system as if it was there freedom.
But the real motive is the following: The Priviate lenders. want to be allowed to continue to exploit and abuse students who need loans, without any restrictions whatsoever. Let us hope Obama is not defeated in this. It would be nice to see some real change for once.
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