Sunday, March 28, 2010
Student Loan Overhaul Approved by Congress
On Thursday Congress voted commerical banks out of the federal student loan market (an attachment to the Health Care Reform.) These bank-based loan programs, such as Sallie Mae, receive guaranteed federal subsidies to lend money to students while the government assums all the risk. As California Democrat Representative George Miller states, "Why are we paying people to lend the government's money and then the government guarantees the loan and the government takes back the loan?" While this has huge Democratic support, some Republicans are viewing this as too much government involvement.
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At the expense of injecting politics into an economics blog, I am thouroghly appalled at the Republican stance on this issue. After lambasting the Democrats on the ballooning budget deficit how can they not be considered hypocrites for opposing this measure? Though it is projected to save $61 billion over ten years - almost chump change in the scheme of things - a penny saved is still a penny earned. It is also just plain good policy for the nation. Anything that can potentially raise tertiary educational attainment in this country is good in the long run, and will make us more competitive in the future.
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