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Obama touts plan to change college loan system [View All]

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Frank Booth Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-24-09 02:47 PM
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Obama touts plan to change college loan system
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Source: AP

President Barack Obama on Friday renewed his call for the government to stop backing private loans to college students and replace them with direct financial aid to young people.

Obama said the surest test for success in the challenging economy is a college degree or other training, yet access to higher education continues to shrink as costs rise. To reverse that, the president repeated his campaign proposal that would eliminate the Federal Family Education Loan program that costs taxpayers $15 million each day.

The administration has pushed for federal financial aid to go directly to students, not to banks that lend money to students. Obama said he wants to eliminate the "middle men" lenders that he says add inefficiency to the system -- a move he said could open classrooms to 8.5 million more students.
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Obama has claimed that the change would save at least $48 billion over the next 10 years -- money that could be funneled to student aid. But Republicans are concerned about the costs of that and even some Democratic lawmakers oppose the switch.
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Lenders are also fiercely lobbying against the proposal, which would end a historically lucrative business.

Read more: http://finance.yahoo.com/news/Obama-touts-plan-to-chang...



I assume the Blue Dogs will try to block this, and Reid will cave again.
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