The Times Picayune reported the U.S. House of Representatives voted to remove private lenders from the student loan business and put the government in charge. The vote was 253-171 in favor of the proposal. Only six republicans voted in favor and four democrats voted against the bill. According to the report the bill fulfills nearly all of President Obama's campaign promise for higher education.
The measure ends subsidies for private lenders and allows the government to send the money direct to students. The report pointed out the CBO (Congressional Budget Office) says that when administration cost and market conditions are considered the savings from switching to direct government lending would be $47 billion. Republicans said the bill could end up costing the government more money and republican John Kline said the numbers just don't add up. Mr. Kline offered no numbers or explaination to refute the CBO numbers, just the usual conservative rhetoric.
Republicans also argued against putting the government in control of student lending. The fact is private lenders can still make student loans if they want to, they just don't receive federal subsidies for doing so. This writer, a veteran, went to college on the G.I. bill and my check came direct from the government.
Members of Louisiana's republican delegation in congress who voted against the bill were; Bustany, Alexander, Cassidy, Fleming and Scalise. Republican Cao and democrat Melacon voted with the majority and for the bill. Representative Cao, who has been in congress only eight months once again showed his maturity over his republican college with his yes vote. The gang of five who voted against the measure were once again willing to walk the party line and oppose anything coming out of the Obama administration.
The people of Louisiana should take note.
