One of the best things about the reconciliation bill is that it will have a broad impact on student loan reform and getting the government back in the business of lending its own money to student borrowers instead of going through private lenders which essentially take the money, mark it up, and then hand it off to the students who need it. It’s a plan that makes sense, and takes some of the risk out of student loans and makes them easier for students to get, not to mention more likely the students will actually pay them off and the government will get its money back before the private lender goes under:
President Obama’s “no-brainer” suggestion that the government get back into the direct lending business has such obvious fiscal merit that you’d think it would melt the heart of the most obdurate conservative. But it’s getting resistance anyway — which is proof that there’s more than money at stake here. This proposal threatens two of the conservatives’ most cherished goals; and they’re willing to waste as much taxpayer money as it takes to keep us from backsliding away from the progress they’ve made.
The first goal is preserving privatization. The conservatives have been telling us for 40 years that there’s nothing the government can do that the free market can’t do better. Of course, most of us really get it now that “privatization” really means “paying 25% more for the same stuff and letting the private sector skim off the profit while sticking us with the messes.” While privatization has worked well in some areas, it’s been a disaster in others — and this is one of them.
The conservatives are demanding that we pay a totally unnecessary premium for our student loan programs because a) their banking friends are pocketing a fortune off the program and b) we must not ever question the proposition that the private sector can do this better. It’s just bad form, bad taste, and bad politics to suggest otherwise, even when it’s patently obvious that the actual goods or services we’re getting cost considerably more — and are produced with less oversight and lower standards — than what we used to get directly from the government. Therefore: Obama’s brazen suggestion that we need to bring this program back into the public fold is outright heresy. If Americans figure out that the government really can do this one thing better than the private sector does, this piece of the conservative gospel could be called into question in other areas as well. The right will not stand for this.
No, they likely won’t – but then again, the right has never been interested in what’s best for the American people – only the pocketbooks of their friends and maintaining the privileged status quo.
[ Student Loans: The Right's Hidden Agenda ]
Source: The Campaign for America’s Future


