"This is, to coin a phrase, sort of a big effin deal. "

[babylonsister]

http://motherjones.com/kevin-drum/2010/03/all-and-college-loans-too


All This and College Loans Too

— By Kevin Drum
| Thu Mar. 25, 2010 7:56 PM PDT


The House passed the final component of Affordacare1 tonight. Yawn. So what has Congress done for me lately, anyway?

Oh yeah, this:

Ending one of the fiercest lobbying fights in Washington, Congress voted Thursday to force commercial banks out of the federal student loan market, cutting off billions of dollars in profits in a sweeping restructuring of financial-aid programs and redirecting most of the money to new education initiatives.

....Since the bank-based loan program began in 1965, commercial banks like Sallie Mae and Nelnet have received guaranteed federal subsidies to lend money to students, with the government assuming nearly all the risk. Democrats have long denounced the program, saying it fattened the bottom line for banks at the expense of students and taxpayers.

This is, to coin a phrase, sort of a big effin deal. The student loan program has been a disgrace for a long time, essentially insuring a fat stream of profits to banks by allowing them to make risk-free loans thanks to guarantees from Uncle Sam. It was a pretty nice racket while it lasted. Republicans, of course, denounced the end of this gravy train, demonstrating once again, as Bruce Bartlett said a few years ago, that they are "incapable of telling the difference between being pro-business and being for the free market."

Bottom line: if the taxpayer are taking the risk, then the taxpayers ought to get the profit too. Now they do, and it's going to be used to expand access to college for low and middle income students. It's a reform that's long overdue.

1aka the Patient Protection and Affordable Care Act of 2010 aka the Affordable Care Act aka ACA

[Orsino]

1. I didn't realize that this part was so sweeping.

New students can stop worrying about loan repayment, and focus on the important:

:beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer: :beer:

[vaberella]

4. Isn't it great. I can't wait to call Sallie Mae and find out what they will do. n/t

[unblock]

2. "incapable of telling the difference between being pro-business and being for the free market"

i like that quote!

though i might chance "pro-business" to "pro-big-business" or even "pro-corporate-donors".

[vaberella]

3. Not if he cuts off banks from student loans. n/t

[Silent3]

5. Pet peeve time...

I hate it when people say "to COIN a phrase" when they are merely QUOTING an existing phrase. To "coin" is to create something NEW.

Grrr.

[unblock]

6. i always took it as humorously or ironically claiming ownership of a well-known phrase

that is, i think most people who use the phrase know exactly what it means.

[elias49]

7. I'm beginning to love this guy!

I watched closely during the prez primaries and the general. I thought "Wow! At long last, a real progressive!" Then, when he took the WH, and started a plodding, difficult march towards turning things around, I thought..."Hmmm. What happened to Barack Obama?"
I see, now, that he isn't really that 'progressive'. He is, admittedly, more of a centrist. And I realize Thank goodness, because a truly 'progressive' individual would be so hamstrung that nothing would be accomplished. I think I'm as idealistic as anyone, I mean, on a personal level - as an analogy - I always wanted my 2 children to be outstanding individuals. I thought they could rise above the rest, be the cream of the crop. But I've become more centrist in this regard, too. My kids are amazing individuals. I don't care that they didn't play piano concertos at the age of 5, or get admitted to Harvard as 15 year olds. They're wonderful human beings, with a true desire to do good deeds. They're more than satisfactory centrists themselves. Oh, how I love them both...
But back on topic...another thread recently asks wether Barack Obama may be our first 'genius' president. Maybe. But I see one thing for sure: this centrist is not nibbling at the edges: he's taking large bites. The stimulus package irked me, but it's a beginning. The 'health care reform' package gives away too much to insurers, but it's a beginning. The above-mentioned restructuring of financial-aid is a thing of beauty. There is still so much that needs to be done - or needs to be STARTED. He may be the single best chance we have to START changing the course of this floundering nation.
I can only imagine what might be in store for us if he and his administration remain intact for 7 more years!! Think about it. These early accomplishments, if they embolden a too-timid Democratic party, might turn the 21st century into a remarkable time.
A genius? I don't know. But I'm beginning to think that Barack Obama may may turn out to be among the greatest presidents in my lifetime.

[NecklyTyler]

8. K&R