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Stinger
09-17-2009, 01:14 PM
Well why everyone is still focused on Health Care ...

House passes overhaul of college aid program

By LIBBY QUAID (AP) 37 minutes ago

WASHINGTON The House has voted in favor of the biggest overhaul of college aid programs since their creation in the 1960s a bill to oust private lenders from the student loan business and put the government in charge.

Thursday's vote was 253-171 in favor of a bill that fulfills an array of President Barack Obama's campaign promises, ending subsidies for private lenders, boosting Pell Grants for needy students and paying for community college reforms, among other things.

The measure goes next to the Senate, where its fate is a little less certain.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

WASHINGTON (AP) The House is poised to vote to push private lenders out of the federal college loan business and massively expand the government's own lending program.

Following a day of debate, House lawmakers were expected to approve on Thursday a student aid bill that has widespread support, including from the White House. The measure will then go to the Senate, where its fate is somewhat less certain.

Putting the government in charge of all federal loans would save taxpayers an estimated $87 billion, according to the Congressional Budget Office. The CBO says the figure could be much lower, $47 billion, when administrative costs and market conditions are considered.

The money would boost Pell Grants for needy students, increasing the maximum grant by $1,400 to $6,900 over the next decade. It also would pay for a new college completion fund, community college reforms and more college aid for veterans.

"No student in this great country of ours should have to mortgage their future to pursue their dreams," said the bill's sponsor, California Democratic Rep. George Miller, chairman of the House Education and Labor Committee.

Yet the money also would be spent on things that don't help pay for college, such as construction at K-12 schools and new preschool programs.

And while the measure would increase Pell Grants, it would do nothing to curb college costs, which rise much faster than Pell Grants do.

As consumers, college students probably wouldn't notice much difference in their loans, which they would get through their schools. Broadly speaking, the bill doesn't do much to make loans cheaper or help pay them off.

It does keep interest rates for need-based federal loans from jumping from 3.4 percent currently to 6.8 percent as scheduled in 2012. Rates for most other loans would remain at 6.8 percent.

Still, the bill's changes to federal college aid programs would be the most sweeping since their creation in the 1960s and would fulfill a campaign promise by President Barack Obama.

The measure would end the subsidized loan program under which private lenders made $56 billion in government-backed loans to more than 6 million students last year, compared with $14 billion in direct loans from the government.

The bill would also shorten the labyrinthine college aid form, which Obama proposed to eliminate altogether when he ran for president.

Republican critics argue it is wrong to put the government in near-total control of student lending.

"Ask yourselves whether another government takeover is what we need right now," said Minnesota Rep. John Kline, senior Republican on the Education Committee.

Many also worry about job losses in their districts. Private lenders employ more than 30,000 people whose jobs depend on the subsidized loan program, and the industry says many would be laid off.

Employees of Sallie Mae, the biggest student lender, have been trying to involve local leaders in the issue and recently held a series of town hall meetings and petition drives in Pennsylvania, Florida, Delaware, New York and Indiana.

The Reston, Va.-based lender has about 8,500 employees in the program and probably would lay off about 30 percent of those workers. It still will have contracts to service federal loans.

Democratic Rep. David Wu of Oregon said lenders still could make all the loans they want. "What will not happen anymore is making those student loans with taxpayer subsidies," he said.

Under the measure, Pell Grants would rise slightly more than inflation over the next decade, increasing on average by about 2.6 percent yearly, according to the bill's sponsors.

However, the grants would still depend on annual spending bills and could rise less than promised, as has happened in the past.

Obama originally proposed to take Pell Grants out of lawmakers' hands entirely, making the program an entitlement like Social Security and Medicare, which would have cost an estimated $117 billion more than lawmakers have to spend.

Copyright 2009 The Associated Press. All rights reserved.

http://www.google.com/hostednews/ap/article/ALeqM5jVuDCHzaPCyO_KpNM1MuwzSfNLJgD9AP7VQG0

wild1
09-17-2009, 01:27 PM
WASHINGTON — The House has voted in favor of the biggest overhaul of _____ since their/its creation in the 19__s — a bill to oust private ___ from the _____ business and put the government in charge.

Hey, neat, it's every piece of legislation that has come down the pike since January.

BucEyedPea
09-17-2009, 01:34 PM
WASHINGTON — The House has voted in favor of the biggest overhaul of college aid programs since their creation in the 1960s — a bill to oust private lenders from the student loan business and put the government in charge.


You think that's good huh? Oh brother! This country is in deep trouble.
More Nationalization by the commie-in-chief!

Stinger
09-17-2009, 01:38 PM
You think that's good huh? Oh brother! This country is in deep trouble.


Huh? Are you referring to me or the article?

BucEyedPea
09-17-2009, 01:40 PM
Huh? Are you referring to me or the article?

The article. But I did assume, perhaps incorrectly, you must have liked it.

petegz28
09-17-2009, 01:40 PM
Each day we become more and more like the USSR

Stinger
09-17-2009, 01:45 PM
you must have liked it.

Um no ... I think it is horrendous.

Hydrae
09-17-2009, 01:50 PM
I wonder what affect this may have for my wife. She just finished her first semester of a two year program. :hmmm:

BucEyedPea
09-17-2009, 01:51 PM
Um no ... I think it is horrendous.

Okay, my mistake then. Sorry.

SenselessChiefsFan
09-17-2009, 02:09 PM
Moron's just don't understand supply and demand.

Basically, the more money you give out, the more demand for colleges. The more demand, the higher price they charge. It really is that simple.

Why do you think the prices of tuition have continued to grow at rates three and four times inflation?

It is the same reason home values went up so far so fast, money to buy them was too easy to get.

Why do the people running our country not understand simple economics?

Iowanian
09-17-2009, 02:22 PM
I wonder what affect this may have for my wife. She just finished her first semester of a two year program. :hmmm:

Nothing to see here, Comrad.


If the govt wants to do something, they should real in the costs of the Federal and state funded colleges.

BucEyedPea
09-17-2009, 02:22 PM
Moron's just don't understand supply and demand.

Basically, the more money you give out, the more demand for colleges. The more demand, the higher price they charge. It really is that simple.

Why do you think the prices of tuition have continued to grow at rates three and four times inflation?

It is the same reason home values went up so far so fast, money to buy them was too easy to get.

Why do the people running our country not understand simple economics?

Exactly! A gravy train for suppliers.

Socialism increases costs and ruins quality.

stevieray
09-17-2009, 02:24 PM
reparations

Brock
09-17-2009, 02:26 PM
reparations

To who?

tooge
09-17-2009, 02:38 PM
Does this mean I dont have to pay my loans back?

Brock
09-17-2009, 02:40 PM
Does this mean I dont have to pay my loans back?

It's going to make it easier to collect on future loans, I'm guessing.

KILLER_CLOWN
09-17-2009, 02:45 PM
It's going to make it easier to collect on future loans, I'm guessing.

Not paying your loan(s) back? Well then proceed straight to the FEMA camp to work off your debt.

stevieray
09-17-2009, 02:45 PM
To who?

to those who have suffered from systemic oppression in the educational world, I suppose.

Brock
09-17-2009, 02:52 PM
Not paying your loan(s) back? Well then proceed straight to the FEMA camp to work off your debt.

Well, nobody garnishes wages like the US Government.

Brock
09-17-2009, 02:53 PM
to those who have suffered from systemic oppression in the educational world, I suppose.

Huh.

Chocolate Hog
09-17-2009, 02:54 PM
So the government will be in charge of student loans which means no competition which means higher prices. Awesome.

FishingRod
09-17-2009, 03:35 PM
Why do citizens of the state, pay to go to public Universities? Why does it cost so much more to go to 13th grade than 12th? Shouldn't education, like healthcare, be a right? Do we need to lower Professors salaries?

KC Dan
09-17-2009, 04:06 PM
Why do citizens of the state, pay to go to public Universities? Why does it cost so much more to go to 13th grade than 12th? Shouldn't education, like healthcare, be a right? Do we need to lower Professors salaries?They should pay professor salaries like they pay physicians. When Tricare sends a payment to a doctor following being invoiced, they only allow on average 25-30% reimbursement to the doctor. It should be the same for professors. They bill the gov't $xxx,xxx for their salary and the gov't should pay them 25% of their asking. Fair is fair.

Taco John
09-17-2009, 04:18 PM
They should pay professor salaries like they pay physicians. When Tricare sends a payment to a doctor following being invoiced, they only allow on average 25-30% reimbursement to the doctor. It should be the same for professors. They bill the gov't $xxx,xxx for their salary and the gov't should pay them 25% of their asking. Fair is fair.



I could easily see the Republicans responding like this to the passage of a healthcare bill. This is a huge reason why socialism is so dangerous. When you engineer society, there is always an unintended response to that engineering. It's the law of unintended consequences - better known as Newton's third law: ''To every action there is always an equal and opposite reaction."

Healthcare reform in this country is going to open up a pandora's box.

Jenson71
09-17-2009, 04:26 PM
It's the law of unintended consequences - better known as Newton's third law: ''To every action there is always an equal and opposite reaction."

I don't think Newton's third law is an unintended consequence.

BucEyedPea
09-17-2009, 04:28 PM
I don't think Newton's third law is an unintended consequence.

The specific consequence is not always foreseeable until the action plays out.

Taco John
09-17-2009, 04:38 PM
I don't think Newton's third law is an unintended consequence.


I don't think you understand the point I was making.

Saul Good
09-17-2009, 06:39 PM
Well, nobody garnishes wages like the US Government.

...and they don't even have to take you to court first.

The Mad Crapper
01-26-2010, 04:15 AM
Hey, neat, it's every piece of legislation that has come down the pike since January.

ROFL

HonestChieffan
01-26-2010, 07:33 AM
We need to price college at its cost and stop propping it up with tax dollars.