NYT: Obama's Student Loan Overhaul Endangered

[flpoljunkie]

March 10, 2010

Obama’s Student Loan Overhaul Endangered
By DAVID M. HERSZENHORN

WASHINGTON — With Democratic Congressional leaders and the White House struggling on Wednesday to finalize the details of major health care legislation, House Democrats were desperately trying to prevent another of President Obama’s top legislative priorities – an ambitious overhaul of student loan programs – from becoming a casualty of the health care battle.

But Democrats in the Senate, where the private student lending industry has strong allies, predicted on Wednesday night that the education bill would not be part of an expedited budget measure containing the final revisions to the health care legislation. Some Democrats said that such a move would stall the student loan changes at a minimum for several months, and perhaps kill the overhaul altogether.

Mr. Obama’s plan would end a program in which the government pays private, for-profit student lending companies to make risk-free loans using taxpayer money. Instead, the proposed overhaul would broaden the government’s existing direct-lending program, saving billions of dollars that the president had proposed using to expand Pell grant scholarships for low-income students.

But the education bill is strongly opposed by some Senate Democrats, particularly those in states where for-profit student lenders are major employers. In a letter to the majority leader, Senator Harry Reid of Nevada, six Democrats said they disliked the president’s proposal.

"We write to make you aware of our concern with provisions of contemplated student lending reform that could put jobs at risk," the senators wrote. "Increase our nation’s commitment to higher education funding is a priority, but we must proceed toward this objective in a thoughtful manner that considers potential alternative legislative proposals, while still delivering an equivalent amount of savings over the next ten years.

The letter was signed by Senators Thomas R. Carper of Delaware, Blanche Lincoln of Arkansas, Ben Nelson of Nebraska, Bill Nelson of Florida, Mark Warner of Virginia and Jim Webb of Virginia.

more...

http://www.nytimes.com/2010/03/11/us/politics/11loans.html?src=twt&twt=nytimespolitics

[liberal N proud]

1. It doesn't benefit big business or banks enough

Nothing gets done in Washington these days unless there is a benefit to the rich or big business.

It will only get worse, now that Congress can legally be bought.

:sarcasm:

[City Lights]

2. Profits over people.

Sadly, it fits both parties now. x(

[fasttense]

3. Just some more abstinence-only education reform. n/t

[customerserviceguy]

4. Regardless of this bill's merits

what the hell is it doing in a healthcare reform package?

This is how we get bridges to nowhere.

[depakid]

5. Because it has to go through reconciliation- and once again, Blanche Lincoln returns Obama's favor

[high density]

6. I'm tired of the same names coming up time and time again in obstructionist, pro-corporate ways

It's way past time to take out the middlemen in these loans.

[vaberella]

12. It is the same isn't it. I'm taking note of this as well. Lincoln is a dirty dealer.

Webb can come through a lot of the time though.

[Jennicut]

7. Gee, why am I not surprised. Can't go on helping regular people when the

the private student lending industry says no. My student loans were crazy but I had some wonderful help from my parents. I was lucky.

[belpejic]

8. Freaking Blanche Lincoln.

God I hope she loses the primary. Though I can't really afford it I think I'm going to kick some money to Halter anyway.

[choie]

9. I can smell another Obama compromise coming

..and it stinks.

[vaberella]

11. You make it seem as though Obama wants this.

What do you want...no changes at all and students still be screwed or at least some significant changes. Then we can make some amendment when we get these clowns out of office.

[choie]

13. what I want is for Obama to stick to his guns about SOMETHING

n/t

[vaberella]

14. Not if it fails and leaves us at not even square one.

He wants to lay the ground work to get things done. That's what politics is. When the next round of elections comes around and we get progressives in the senate who want to do something we can go back and finish the deal.

[vaberella]

10. People always like to say it's Obama. He has the shittiest Senators in EXISTENCE!!

I mean I have never seen people like this. Students from all of those states should revolt. You care more about those lenders than my education. I have always felt that in order for me to be successful in the United States I need to live in debt and potential poverty.