Helping Students


Obama’s Student Loan Overhaul in Trouble

March 11, 2010 | Category: Student Loans 
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New York Times reports student loan changes Obama is trying to get passed are endangered.

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.

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.

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One Response to “Obama’s Student Loan Overhaul in Trouble”

  1. Michael on March 11th, 2010

    This doesn’t surprise me. The lobbyists from the student loan industry are very strong. Congress doesn’t represent the voters anymore. They’re only concerned with campaign donations and not pissing off special interest groups. If they “do” stand with the voter these special interest groups will funnel a ton of money into their opponents campaign. Or make a few calls (+donations) to the people who control each party. It’s kind of hard to win if your own party doesn’t support you anymore.

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