Student Loan overhaul to be included in HCR (WaPo)

[Waiting For Everyman]

http://www.washingtonpost.com/wp-dyn/content/article/2010/03/16/AR2010031603763.html?nav=rss_politics

Republicans criticize Democrats' plan to overhaul student lending

By Nick Anderson
Washington Post Staff Writer
Wednesday, March 17, 2010

Republicans assailed a proposed overhaul of student lending Tuesday as a "government takeover," a "job killer" and an "outrage," seeking to rally opposition to a Democratic measure that would cut private lenders out of the federal loan market.

The measure is expected to be merged this week with a health-care bill and could come to a vote in the House by Saturday. It would end a student loan program begun in 1965 in which private lenders receive a government guarantee of repayment if borrowers default.

At the same time, the proposal would expand a government lending program. Direct lending would become the only option for federal student loans on July 1, a shift that the nonpartisan Congressional Budget Office estimates would net the Treasury $62 billion through 2020. Most of the savings would be channeled into Pell grants for needy college students.

______________________

I wondered what was happening with this. Last I heard, it was to be merged with the Jobs Bill, but the report didn't include any more info about it.

Anyway, an article I read a while ago stated that the Student Loan overhaul is supposed to include some provisions which would decrease payments to no more than 10% of disposable income, and provide an end to payments after 10 years. (Also this wasn't mentioned as being in the bill, but I was just hoping that while it was being worked on, some Congressperson might get a provision included about discharging student loans in bankruptcy, too.)

I'm not a student myself, but I know some young people (and older students and parents) who really need some relief.

And I think cutting the private banks out of this would be a GREAT idea.

[FrenchieCat]

1. I posted the language straight out of the Reconciliatin bill

here at the link earlier today: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=433x229011

[Waiting For Everyman]

2. Cool! Thanks, Frenchie!

I looked around DU for a post on this, but couldn't find anything. I'll kick it.

[joycean]

3. Smart move on the part of the government!

Because of the harsher penalties surrounding federal loans as opposed to private, more federal loans are repaid in full than any other form of student loan. Therefore, keeping the interest revenue in the hands of the Federal government makes sound economic sense. This is revenue positive, deficit reducing policy. Republicans should support this wholeheartedly; they don't because they really are what the left accuses them of being; wholly owned subsidiaries of corporations.

How even 1% of the American people got it into their head that the GOP is on the side of the 'average American' I doubt I will ever know.

[jwirr]

4. Good.