Republicans Get Desperate to Save Bank Subsidies

[marmar]

from OurFuture.org:



Republicans Get Desperate to Save Bank Subsidies
By Armand Biroonak

July 30, 2009 - 12:02am ET


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They must be desperate. Unhappy with the Obama plan to end subsidies for student loan lenders, Republicans look to mar the benefits gained by the plan. Touting findings by an unofficial CBO estimate, Republicans look to use it as ammunition to kill the historic Student Aid and Fiscal Responsibility Act. But with a closer look, their arguments receive a failing grade.

The official CBO estimate placed the savings gained by ending bank subsidies with a move to the federal direct lending program at close to $90 billion. Republicans though are promoting their alternative CBO estimate –which they requested—showing the bill saves substantially less. However, this new figure relies heavily on future “market risk”, that even the Director of the CBO states is not reliable:

“The approach does raise some concerns. As the recent financial turmoil has shown, risky assets, including student loans, can fluctuate wildly in value. Those fluctuations can lead to large changes in market-based estimates of subsidy rates for student loans from one year to the next.”

Rep. George Miller (D-CA) –author of the bill – rightly blasted Republicans for their deceptive tactics:

“It’s clear that Republicans didn’t like the truth – that our legislation generates almost $90 billion that could be used to help students, families, and taxpayers – so they shamelessly decided to have a little fun with the numbers…This is nothing more than a desperate attempt to confuse the public”

Meanwhile, top Republican Sen. John Kline (MN) on the House Education and Labor Committee responded to the alternative finding, “This analysis from the Congressional Budget Office confirms once and for all that these savings are a myth. A government takeover of our student loan programs is just a budgetary gimmick designed to finance the latest entitlement spending spree, leaving our children and grandchildren to pick up the tab.” .............(more)

The complete piece is at: http://www.ourfuture.org/blog-entry/2009073129/republicans-get-desperate-save-bank-subsidies

[Laelth]

1. Lies, lies, and more lies.

As usual, Republicans have no shame and will go to all lengths to protect their rich masters who are gorging themselves at the public trough.

:dem:

-Laelth