Community | September 19, 2009 | 19 comments

Student Loan Overhaul Approved by U.S. House

source: http://www.newsmax.com/politics/student_loan_overhaul/2009/09/18/261730.html

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The biggest change in U.S. higher education finance in 35 years was approved on Thursday by the House of Representatives, handing a defeat to major banks and student loan giant Sallie Mae.

Lawmakers voted 253-171 in favor of legislation that would cut the banks and Sallie Mae out of a large slice of the $92 billion college student loan business, shifting most lending into a program run by the U.S. Education Department.

The bill, supported by the White House, will go next to the Senate for further consideration.

The Senate education committee is drafting a bill similar to the House measure and hopes to take action on it within weeks, said a Senate Democratic aide.

Democrats praised the House bill, saying it represents a victory for students over banks.

"Today the House made a clear choice to stop funneling vital taxpayer dollars through boardrooms and start sending them directly to dorm rooms," said Democratic Representative George Miller, chief sponsor of the measure.

With six Republicans supporting the House measure on final passage, the White House claimed it as a bipartisan victory.
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19 comments // Student Loan Overhaul Approved by U.S. House

  • Ozzykozzy2
  • moonzNstarz
    • 0
      moonzNstarz  

    • I think this was well ovedue and that now they need to regulate the interest rates because having loans availiable means nothing if we can not pay them back

    • 2 years ago
  • BKsaysAction
  • stopnoise
    • 0
      stopnoise  

    • This Country will never be free from slavering if at least Education, Jobs and Health Care are not free from the Pirate and the middle blood sucker man.

      Our Actual Education System causes more problems to society than it resolves because one will corrupt and "kill" anything just to get out of debt.

    • 2 years ago
  • Think_LED
  • priscillas9
    • 0
      priscillas9  

    • While this is a good step forward, they jumped right over the main problem. The cost of higher educations is ridiculous! People shouldn't have to pay that (from previous poster) $120,000 just to get a degree! Hell even for in-state public college it costs way too much! (40,000 min at ASU) This bill should have come AFTER they did something to regulate the cost of attendance!

    • 2 years ago
  • lvp
  • Ihatethemall
  • tbowman131
    • 0
      tbowman131  
    • Ihatethemall:

      you understand what the word "loan" means right?

      do you have a problem giving students below-market-rate loans for education? or should it only be banks who get to borrow money for 0-0.25% and then turn around and loan that same money to us at 8-30%? what's wrong with investing in our countries future.

      if you think that publicly-funded higher education is somehow unamerican, i suggest looking up the history of the University of Virgina and Thomas Jefferson.

    • 2 years ago
  • Ozzykozzy2
  • emarston
    • 0
      emarston  

    • i hope this helps make it easier to get loans too because right now i'm not in school because i can't get the loans to pay for a $120,000 education.

    • 2 years ago
  • mcjk
    • 0
      mcjk  

    • Great, student loans for the win.

      John Kline is quoted as complaining its an expansion of the government. Well thanks for opposing students, Representative. I guess expanding the government for war was better, huh?

    • 2 years ago
  • Alanisnotcool
  • boywhocould
    • 0
      boywhocould  

    • mega corps pay ridiculous sums of money to exec/admin because if they didn't fraud and internal fleecing would multiply. . so in a way the bigger the company is the more you have to bribe the managers not to be bad guys err. . .I mean worse guys

    • 2 years ago
  • HowdyDo
    • 0
      HowdyDo  

    • Woo! Hoo! Although, out of 3 entities that service my school loans, Sallie Mae is the best, I'm glad students won't have to pay extra to pay the exec salaries!

    • 2 years ago
  • thedez
    • 0
      thedez  

    • Just cutting out the middle man. Can't wait to see this linked to "Socialism" by people not understanding that they can still borrow from private banks.

    • 2 years ago
  • carmalite
    • 0
      carmalite  

    • I am sick of privatization being nothing but corporate welfare. The banking instututions can save money by not paying OBSCENE salaries to their CEOs and Executives.

    • 2 years ago
  • RadixLecti
    • 0
      RadixLecti  

    • Well this is good, but none the less it is still cutting out the private banking institutions. Although I do not agree with just about everything that both the Senate and house have been doing as of late, this may very well be good socially.

    • 2 years ago
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