Party Platforms, Student Loans, And You

The right-wing is gathering together to repeal one of President Obama's major accomplishments that's saving taxpayers billions of dollars and helping millions of young people.

No, I'm not talking about Obamacare.Last week, extreme conservatives enshrined their opposition to another Obama accomplishment you may not have heard of -- the Student Aid and Fiscal Responsibility Act (SAFRA).Before SAFRA, student lending banks got a sweet deal. Normally, when these banks charge young people sky-high interest rates, it's because they have some skin in the game and need to cover their losses. But for student loans, the federal government would back any money loaned to students. Banks got to charge students a hefty interest rates completely risk-free as a very expensive middleman. President Obama's student loan bill removed the bank as a middle man and is set to save taxpayers over $60 billion during the next 10 years.Nice deal, right?Not if you represent the banks and student lenders instead of students and taxpayers. This made it into the Republican platform last week:

The federal government should not be in the business of originating student loans; however, it should serve as an insurance guarantor for the private sector as they offer loans to students. Private sector participation in student financing should be welcomed.

The platform might as well read: The government will give money to the banks, or it's socialism!President Obama's student loan bill saves billions in fees that were going to the banks, it reduces the deficit, it helps students save money on student loans, it removes predatory banks from the repayment process -- but it's clearly evil.Help us come up with a good way to explain how messed up this proposal really is. What's a good analogy to what's going on here ("Letting banks profit off of education is like...")? Submit yours by clicking here.

Be the first to comment

Please check your e-mail for a link to activate your account.