House approves bill to make federal government direct lender for student loans

Today the House of Representatives took a step towards modernizing the federal student aid system by passing the Student Aid and Fiscal Responsibility Act.  The act will eliminate the government subsidies and guarantees that private lenders get for issuing student loans and will make the federal government the direct lender for student loans.

Estimates are that the government will save $87 billion over ten years by eliminating the subsidies.  That money will be used to make sure that interest rates on student loans remain low and expanding the Pell Grant program.  The bill also contains promises to streamline the Free Application for Federal Student Aid  and expand access to Perkins Loans.

The bill was sponsored by George Miller (D—Calif.) and was passed 253-171 (247 of the votes in favor of the bill were from Democrats and 167 of the votes against it were from Republicans).

3 Comments on “House approves bill to make federal government direct lender for student loans

  1. I’d like to hear how all those who voted no against this justified their vote. Because, you know, saving money? Good thing. Making all of the people currently paying out of their asses just go to college pay less? A really really good thing.

    And I’d say it’s more of a good thing than appealing to your corporate donors or whatnot.

    What say you, Joe Wilson?

  2. Pingback: What Are Some Different Types Of Direct Mail? | freearticlesdbonline.com

  3. The bill didn’t save anyone money. It actually put us on a path to spend billions more we didn’t have. And now the government controls another industry. I’d like to hear how all those who voted for this bill justified their vote.

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>