Republicans Opposed To Helping People Go To College

by Ben Hoffman

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 โ€” 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 โ€” if overshadowed by โ€” 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.

Source

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.

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33 Comments to “Republicans Opposed To Helping People Go To College”

  1. I am really wondering if you actually stand FOR anything or is your sole reason to write is to stand against?

    God forbid if folks support a flat tax rate, as most Conservatives and Republicans do. God forbid if I believe an example of 25% of someone making 50k a year (12.5k in taxes) is fair compared to someone making 250k a year paying 62.5k. God forbid if I think we should punish someone for being successful in raising their percentage taxed even higher to pay for more wasteful spending in Washington D.C. especially when we all know all that pork is used to pay out for special interest favors that got them into office. God Forbid! Where does all your hate come from? Have you ever sat back and studied the history of the parties, why they were founded and what they have accomplished? Sure, we all are upset with what Bush did to that great name of the Republicans and Conservatives, but even I knew Democrats were much better than Carter.

    Now do you know everything about the Student Loan fixes that have passed beyond what you heard preached to you on TV? Do you realize that there will be hundreds of thousands of folks losing their jobs from coast to coast over this? Do you realize that the plan is to lower monthly payments by extending the life of the loan payouts? Have you ever seen one of those loan calculators that breaks out the principle you pay vs. interest over the years? The longer you extend the life of the loan, the more you pay out in interest. Following me? Folks will never crawl out from these loans. And have you also noticed the crazy increase in college tuitions lately?

    The power and control hungry government today (including members from both sides of the aisle) want nothing more than to suck up all the profits for themselves. God Forbid if someone makes a profit these days! And now the government is going to step in to make it for themselves and really much more because they are extending the life of the loans, keeping folks dependent on yet something else beyond healthcare.

    I just so happen to love the federal government and love my country. I love the process our founding fathers established and love the Constitution and the principles within it. I,and the millions and millions of people protesting all over, are just not happy with how those principles have been hijacked by big government greed for more power and control. And again, that goes for member from the GOP side of the aisle too. There is some house cleaning over there to do to.

    • [I am really wondering if you actually stand FOR anything or is your sole reason to write is to stand against? ]

      I thought it was obvious. I’m for the government taking over the student loan industry. I’m for the health care bill. I’m for a public option.

      [Now do you know everything about the Student Loan fixes that have passed beyond what you heard preached to you on TV? Do you realize that there will be hundreds of thousands of folks losing their jobs from coast to coast over this?]

      Funny how you right-wingers have such selective concern about jobs. If it’s the result of something that will help people better themselves, like this provision, you hate it. But if it’s outsourcing jobs overseas to increase profits, that’s okay. We couldn’t even get a “buy American” provision in the stimulus bill because of right-wing opposition to doing anything for the good of our country. (Actually, it was because of big money influence in politics)

  2. Thank God! As a poor college student set to graduate soon and have tens of thousands of dollars of student loan debt, I applaud this reform. Just expanding the Pell Grant program alone will help SO many struggling students. If I had been able to receive more grant money, I wouldn’t have this much debt, and I would actually be able to contemplate graduate school (which is pretty much off the table, since I can’t afford any more debt). Why should commercial banks be allowed to profit from the government’s loans when students like me end up getting burdened by huge debt, just because we wanted an education and a chance to make a better life?

  3. I can speak from (almost) personal experience here that a private student loan system backed by Government money is a bad thing. As you’ve heard me comment so many times before, it ISN’T capitalism if the government takes all the risk away. When it happens on such a large scale, such as with student loans, all that happens is the greedy set in and exploit all that they can for as long as they can, which is usually a very long time since government moves slower than molasses.

    According to a friend of mine, the Canadian Student Loan program went through the same ordeal. It first was public, then it went private. Once it did, the banks started adding in all these new fees and conditions, and eventually became VERY predatory. In the end the government took back the administration of the loans and things went much more smoothly. I think we could learn from that lesson.

    Furthermore, what I found interesting is that the banks continued to make “student loans” – i.e. (usually parent-backed) loans which had a lower interest rate than the government was charging on its own, available only to those students who had strong credit. This kept more money in the public student loan system and was a win-win, I think?

    • Whenever something that is a necessity is privatized, there’s a good chance for abuse. Loans are a necessity for most people who want to go to college, so students have been at the mercy of lenders and all their fees and high interest rates.

      And then we have Medicare Advantage, which is a portion of Medicare that has been privatized and has been screwing the taxpayers for years.

      • Or perhaps better put, when ANYTHING is privatized, there is ALWAYS abuse. Believe me, I cringe when I say I prefer the government controlling student loans.

        Either make it completely private, or completely public. None of this “private but gov’t backed” crap. All that happens is the smart and the speedy (business) takes advantage of the slow and the stupid (government), and in the end the consumer/taxpayer/student pays for the mistakes of both.

    • I think we could learn from that lesson.

      Amazing what a little public administration can do for people.

      It would be nice if occasionally people could look past partisan concerns to see what actually works and what is a better compromise for all those involved instead of, eschewing critical thinking and falling back to traditional ideological points of view.

      Mr. Kaine, it is good to see your pragmatism is still a central feature of the positions you espouse.

      • Thank you, Arb – I appreciate it, and likewise, I appreciate your posts and comments also.

        I have moments, I know, where I’m not so pragmatic or far more bullheaded and opinionated (ex: terrorism, capitalism, etc.) but hey, how fun would life be if it was all intellectual? ๐Ÿ™‚

  4. Mr. Hoffman.

    ” Do you realize that there will be hundreds of thousands of folks losing their jobs from coast to coast over this?]”

    “Funny how you right-wingers have such selective concern about jobs. If itโ€™s the result of something that will help people better themselves, like this provision, you hate it.”

    Why don’t you try answering the question ? There are an estimated 2500 people who will join the ranks of the unemployed thanks to your hero . That’s just the beginning . What do you care Mr. Hoffman, after all, you don’t work for Sallie Mae ?

    http://www.wthr.com/global/story.asp?s=12212019

    Your hero demonizes the private sector and shifts the jobs to the public sector for Obama’s buddies at SEIU . It’s called corruption .

    You demonize free speech and call it hate speech . It’s called the Chicago way .

    One third of the voters always knew how corrupt the Democrats are . One third don’t care because it’s about winning . One third are figuring out that they got hornswaggled in the last election .

    You guys are rolling out all of the goodies in this legislation . Everyone knows instinctively that Obama’s figures are a bold face lie . But they have been telling themselves that it’s ok because Barry has promised to screw someone else, someone richer than them . Reality is bearing down on them like a freight train .

    • You’ve been calling Obama my hero for over a year now. I must say that I’ve been disappointed with his performance up until now and especially his attempts at appeasing the radical Republicans, but after his recent spinal development, he is indeed becoming my hero. ๐Ÿ™‚

      As far as the people who will lose their jobs, they’ll just have to find more respectable work. But in the long run, this will be good for our country. We need an educated work force.

      [Reality is bearing down on them like a freight train .]

      Maybe you should take a peek at reality some time. The more Republicans lie and try to obstruct, the lower their ratings. If the economy shows some signs of improving by this fall, the dems may actually pick up some seats. ๐Ÿ™‚

  5. But at least students wonโ€™t be gouged by these private lenders.

    Gouged? You mean they didn’t voluntarily agree to the contract and sign on the dotted line? They were tricked and bilked as a matter of course?

    The revamping of student-loan programs was included in โ€” if overshadowed by โ€” the final health care package.

    And let’s out away the candles, wine, tinkling jazz music and step away from the love fest about to take place over here.

    The truth is this: The Leftists needed to include soething, ANYTHING, that would give them a net positive for the CBO to score. Even when the Leftists use the trick of taking in revenue for 10 years, oaying for benefits for only the last 2, they STILL couldn’t make this freakin’ turkey fly.

    They needed more PFM to make it work. So they grabbed something, anything, create a monopoly, legislate away competition and presto, profit was realized and the CBO was forced to score it as a deficit reduction.

  6. What do I think? I think Limbaugh gets too much credit. Also, I think people need to start wondering who the hell pays for this. Sure it would be nice to help everyone with everything all the time but nothing is free. Nice consequence free of unicorns and rainbows we live in now. Spend a trillion and make money. Trust us we’re the government……… You’d fire a money manger for feeding you that but we believe the govt all of the sudden just because we have a Democratic Administration.

    Everything free for everyone! Damn the torpedoes and full speed ahead.

    • Everything free for everyone! Damn the torpedoes and full speed ahead.

      Just because you find something credulous, does not mean it is necessarily wrong, or that it will not work.

      Most of the western industrialized world has single-payer “free” health-care and they are neither broke, nor are they in the process of going bankrupt.

      Repeating the whinges of the business class as a case against the public option illustrates how powerful business class interests are in the US. The length and breadth to which corporate america has fought Obama’s limited health care reform measures is also a testament to how much power and influence the business class actually wields.

  7. Mr. Hoffman,

    ” As far as the people who will lose their jobs, theyโ€™ll just have to find more respectable work. ”

    Like working for Obama ? You do recognize that there is a problem if the public sector becomes bigger than the private sector,,right ?

    But I will have to copy and paste this remark and use it in the future . God forbid Obama would decide your job is no longer ” respectable. ” I for one do not want a bunch of corrupt clowns in Washington making those judgments . You, on the other hand trust them .

    ” The more Republicans lie and try to obstruct, the lower their ratings. If the economy shows some signs of improving by this fall, the dems may actually pick up some seats. ๐Ÿ™‚ ”

    Where have the Republicans lied ? Now as for your folks, every time I see Obama, Pelosi, and Reid on TV, I just assume they are telling whoppers . If I could find someone stupid enough to take my bets on it, I’d be rich enough to retire now .

    I do expect the economy to improve now that health care is settled . Obama’s uncertainty was killing the market . I wouldn’t expect you to follow that stuff because you hate Wall Street and know nothing about investing and the real world .

    However, after the midterms, as the Bush tax cuts expire and the Obama tax increases take hold and energy gets more expensive, 2011 and 2012 are going to get quite fun . Somebody has to pay for Barry’s dreams . When the Bills come in and SS and Mediscare go broke, because Barry has lied about them, and can’t blame Bush forever, things will get fun .

    Those folks whose jobs are no longer respectable to the Lord Obama, I wonder if the ones who voted Democrat are going to start to crack . It’s a horrible thing to have your job eliminated by a knucklehead in Washington .

    • [Those folks whose jobs are no longer respectable to the Lord Obama, I wonder if the ones who voted Democrat are going to start to crack . Itโ€™s a horrible thing to have your job eliminated by a knucklehead in Washington .]

      And it’s a good thing to have them eliminated by a corporation that outsources your job overseas and helps destroy our economy?

      There are some things that are for the commons and should be run by the people (a.k.a. our government). Some of those things are national parks, the police and fire departments, our military, highways…

      It could be argued that health insurance should be part of the commons when there is wide spread abuse of the system, as there currently is. Student loans also fall into that category. Our country is much better off with an educated population, although that’s bad for the Republican party since people with the propensity to think critically, tend to not be radical right-wingers — thus, tend to vote for the more moderate or liberal candidate.

  8. I have to say, Ben Hoffman’s blog contains the epitome of the left-wing mind set. The most non-sensical reasoning (“when ever something that’s a necessity is privatized, there’s a good chance for abuse”) that I have ever witnessed, and that’s alot of witnessing as I’m 60 years old. The abuse and corruption of Obama and his cronies and the life-long politicians (both sides) make any abuse by privately contolled industry look like childs play.
    Out of all the people that comment on this blog, I have to give Nick credit for having the facts, and is willing to present them. And not one person here refutted his comment with any facts or even common sense. The title to this post reveals the mind set of the left: “Republicans Opposed To Helping People Go To College” … man o man …
    Every left-leaning person can’t stand the idea of any business making a profit … that’s kind of … well strange. I wonder how many of you guys actually work for a company that doesn’t make a profit, and if you’re self-employed, do you just give your profit away or work for free?

  9. Mr. Hoffman,

    The whole premise of your article is specious . You know that Republicans do not oppose helping people go to college . Yet you post it anyway .

    There is a relevant article in the April 5, 2010 issue of National Review . They illustrate the way Liberal Democrats operate to take over private sector businesses .

    Government started the student loan take over in the form of subsidies for private loans . Kinda like the shenanigans of Obama-care . In the 90s they added a public option claiming they wanted ” healthy competition ” between the public and private sectors . Now they have taken over the whole thing .

    Gee, does any of this sound familiar ? For now we do not have the power to stop the Bolsheviks . That is why as many of them as possible must be thrown out of office in the next two elections . In the mean time, every lie, every underhanded deal must be publicized .
    Every argument must be challenged with the truth .

  10. Mr. Hoffman,

    ” And itโ€™s a good thing to have them eliminated by a corporation that outsources your job overseas and helps destroy our economy? ”

    You just justified one wrong with another unrelated wrong . Bad logic . Corporations are not all the same . Or does it escape your perception that a corporation is just another collection of people ? The corporations such as Sallie Mae did not out source anybody’s jobs overseas, at least not as far as I am aware .

    The poor slobs working at Sallie Mae sure as hell had nothing to do with the outsourcing . Why should they lose their jobs, just because your hero Obama needs to send to gravy to his buddies at SEIU ?

    As far as gouging the students, go ahead and post your evidence . Dig up some pathetic victims . Democrats are famous for that type of propaganda .

  11. Mr. Hoffman,

    ” Research it yourself ya lazy bastard. ๐Ÿ™‚ ”

    As the opposing counsel, as it were, I will not do your job for you . However, I will make the effort to further educate you on the facts . Sometimes I think you really are not evil, just grossly misinformed .

    Now let’s talk again about Sallie Mae and the unintended consequences of your hero’s take over student loans . Wait scratch that, the intended consequences of putting many good people out of work .

    Kanjorski, my Congressman had a problem . There are 1,100 Sallie Mae jobs in his district . He received assurances that the Education Secretary will do all he can to save them, in order to get his vote .

    For the life of me, I cannot figure out how that will be done . If he fails those 1,100 jobs will be outsourced right out of Pennsylvania to who knows where .

    http://citizensvoice.com/news/kanjorski-calls-bill-platform-for-future-1.695194

    • It’s another right-wing myth that all those jobs will be lost — just scare tactics for political purposes. While the loans will be issued directly by the government, private companies will still service the loans. And it will save the government 80 billion dollars over the next decade.

  12. Mr. Hoffman,

    ” Itโ€™s another right-wing myth that all those jobs will be lost โ€” just scare tactics for political purposes. While the loans will be issued directly by the government, private companies will still service the loans. And it will save the government 80 billion dollars over the next decade. ”

    Maybe you can explain how in the heck that works,,, oh Great Business Mind ?? If the government is taking $80 billion out of the private sector, then even if the companies service the loans, they do not originate them or profit as much . Therefore they have less need or ability to employ as many .

    Dispute that .

    • [Therefore they have less need or ability to employ as many . ]

      Not necessarily. If loan recipients aren’t gouged (you still need to research that), they will have less debt when they graduate. This will make it easier for more people to go to college, which will create more demand for people to service the loans.

      Also, educated people earn far more than uneducated people, thus, they pay more in taxes. More tax revenues cuts the deficit. It also makes our country more competitive in the world economy.

      Of course, educated people tend to vote Democrat, so that eliminates any chance you’d favor something like this. ๐Ÿ™‚

  13. Mr. Hoffman,

    ” Also, educated people earn far more than uneducated people, thus, they pay more in taxes. More tax revenues cuts the deficit. It also makes our country more competitive in the world economy. ”

    Right NOW,,,, I know many young adults who have 4 years of college or more, who are working at Walmart and similar businesses, if they can even find them .

    These people have huge college debts . All because your party crashed the economy in order to get power . Yes you guys did .

    And your hero delayed the recovery,,, YES he did,,just to get Obama-care !!!

    Just where are the make believe Green jobs ? Another Obama wet dream .

  14. Mr. Hoffman,

    ” Alan, youโ€™re crazy as a loon. ”

    Maybe mad as a hatter at what Barry, Harry, and Nancy have done to my country . I do look at how the economy has done once Harry and Nancy took control of Congress . They have a horrible record that cannot all be blamed on President Bush . But that won’t stop you from trying .

    As I said, if you are a young adult with or without college, your life sucks . If you did not go to college, you are better off because the girl running the cask register next to yours’ with her 4 year degree owes thousands of dollars in Government loans .

    • [They have a horrible record that cannot all be blamed on President Bush . But that wonโ€™t stop you from trying .]

      You keep accusing me of that, but I’ve blamed Clinton more than Bush.

      [As I said, if you are a young adult with or without college, your life sucks .]

      Money doesn’t buy happiness, Alan. Sex, drugs, and rock-in-roll are what make young people happy. ๐Ÿ™‚

  15. Mr. Hoffman,

    ” Money doesnโ€™t buy happiness, Alan. Sex, drugs, and rock-in-roll are what make young people happy. ๐Ÿ™‚ ”

    Only someone with enough money and a secure position would say that . Tell it to kids who can’t find a job and owe mega bucks on their college loans . What they need is opportunity . It is all they ask, but your hero by demonizing American companies and running record deficits that they will have to pay, is denying them opportunity .

    Besides if my kids followed your formula for success, I would kick their asses .

    • [Besides if my kids followed your formula for success, I would kick their asses .]

      I didn’t claim that was the formula for success, although in the words of Hunter Thompson: “I wouldn’t recommend sex, drugs or insanity for everyone, but they’ve always worked for me.”

      What are your kids studying?

  16. Mr. Hoffman,

    ” What are your kids studying? ”

    One is done, but it was Meteorology . You can imagine the discussions on Global Warming . The other, and I’m almost embarrassed to say it, Sociology .

    • [One is done, but it was Meteorology .]

      I worked on a project she might be interested in:
      http://www.ipo.noaa.gov/

      Note: it’s not my fault the project nearly failed. I worked on the software that processed the data from the satellites. It was the hardware guys the screwed the pooch.

      [The other, and Iโ€™m almost embarrassed to say it, Sociology .]

      Social work can be rewarding, I guess. It doesn’t pay much, though.

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