Ending one of the fiercest lobbying fights in Washington, the Senate voted Thursday to force private 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. ...Said George Miller (D - CA) and chair of the House Education and Labor Committee:
Since the bank-based loan program began in 1965, commercial banks like Sallie Mae and Nelnet have received guaranteed federal subsidies to loan 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.
“Why are we paying people to lend the government’s money and then the government guarantees the loan and the government takes back the loan?”Said Lamar Alexander (R - TN) and former federal education secretary:
"The Democratic majority decided, well look, while we’re at it, let’s have another Washington takeover..."Let’s take over the federal student loan program.”No doubt Senator Alexander is against a Washington takeover of Medicare, too.
Here's the Pop Quiz:
(c) contemptuous of his constituents
(d) all of the above