Wait a second… Just wait a second. I’m confused (like that’s something new). If I read this WSJ piece properly, the House of Representatives just said that as far as they’re concerned, private school loans are a thing of the past? Now, collegiate wanna-bes have to turn to Gov’ment and Gov’ment alone?
WASHINGTON — House approval of an education-financing bill Thursday marks a first step toward sweeping changes in U.S. higher education that would cut out private lenders and leave the government as sole provider of student loans under federal programs [emphasis mine].
And the more I read, the worse it gets… Is this some sort of tit for tat for ACORN?
House lawmakers attached a measure to the student loan bill ending all federal government funding of the community organizing group Acorn – the Association of Community Organizations for Reform Now. The group has long been in the cross hairs of Republicans, but more recently has been accused of widespread fraud and other illegal activities.
I mean, really! I may not be Charles Krauthammer, but I do follow the news. Where the Hades did this come from? This is like the midnight good-night ride of Van Jones, or the Executive power grab for the Census.
Why should I be forced to deal with Big Brother if I want a college loan? Suppose I don’t fit the Fed’s mold of “needy” or “worthy”? And who controls those standards? And when might those standards change? And what about my existing student loans?
In theory, this is supposed to save taxpayers $87 billion over the next 10 years, but wait! There’s always a catch:
While the measure would eliminate private lenders from originating government-backed loans, banks and other lenders would be allowed to bid for a limited number of contracts to service government-made loans.
Ah, so the government is nosing its way into the private student loan business, but will allow some private lenders to service the government loans? Oh good, let’s create another level of bureaucracy there to suck up that $87 billion savings, and probably suck up a lot more, if past experience is any indicator.
Am I missing something here?
Yeah, I expected change, but not busting the speed of light, and not forcing private enterprise out of the picture all togehter.