Typical of the Republicans, they’re against anything that helps the poor or the middle class. But attached to the health reform bill was a revamping of the student-loan programs. Predatory lenders such as Nelnet were given the boot and student loans will now be issued directly by the government. Before, the lenders made all the profits while the government assumed all the risk, kind of like Wall St. But now, the government can make a little profit. Well, probably not. But at least students won’t be gouged by these private lenders. Adios Nelnet! Good freekin’ riddance.
WASHINGTON — Ending one of the fiercest lobbying fights in Washington, Congress voted Thursday to force commercial banks out of the federal student loan market, cutting off billions of dollars in profits in a sweeping restructuring of financial-aid programs and redirecting most of the money to new education initiatives.
The revamping of student-loan programs was included in — if overshadowed by — the final health care package. The vote was 56 to 43 in the Senate and 220 to 207 in the House, with Republicans unanimously opposed in both chambers.
Since the bank-based loan program began in 1965, commercial banks like Sallie Mae and Nelnet have received guaranteed federal subsidies to lend money to students, with the government assuming nearly all the risk. Democrats have long denounced the program, saying it fattened the bottom line for banks at the expense of students and taxpayers.
Right-wingers hate Sallie Mae, but they also hate the federal government. So what will they think about this? Only Rush Limbaugh knows for sure. And I’m sure he’ll tell right-wingers what to think as soon as he figures it out.
DRUDGE RETORT 