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House Boosts College Aid, Saves Billions

Lest we forget, the ‘reconciliation bill’ was a two-fer. it contained two unprecedented unconstitutional power grabs in one.

From a suddenly talkative Associated Press:

House boosts college aid for students in need

By Jim Kuhnhenn, Associated Press Writer Sun Mar 21

WASHINGTON – Riding the coattails of a historic health care vote, the House on Sunday also passed a broad reorganization of college aid that affects millions of students and moves President Barack Obama closer to winning yet another of his top domestic policies.

And, after all, that is what is important here.

The bill rewrites a four-decades-old student loan program, eliminating its reliance on private lenders and uses the savings to direct $36 billion in new spending to Pell Grants for students in financial need.

In the biggest piece of education legislation since No Child Left Behind nine years ago, the bill would also provide more than $4 billion to historically black colleges and community colleges

How many billions are going to historically white colleges? (Just kidding.)

"We are pairing this historic health reform with another opportunity that cannot be missed — the chance to make the single largest investment in college affordability ever at no cost to the taxpayers," said Rep. George Miller, D-Calif…

Where are these billions coming from, if not from taxpayers?

Still, Obama won’t get the Pell Grant expansion he initially sought. Congressional Democrats had to trim their original spending plans when the 10-year savings realized by switching to direct government loans dropped from $87 billion to $61 billion.

And never mind that both numbers are sheer fantasy.

Private lenders have conducted an all-out lobbying effort against the bill, arguing it would cost thousands of jobs and unnecessarily put the program in the hands of the government.

What is unnecessary about it?  Why shouldn’t the government be the ones to decide who can and who can’t go to college?

How else are they going to pick and choose the leaders of tomorrow?

In addition to using the $61 billion in savings from that change for Pell Grants and higher education institutions, the legislation would direct about $19 billion for deficit reduction and to offset expenses in the health care legislation.

And the rest of the money will go for pixie dust.

Besides increasing Pell Grants, the bill provides $1.5 billion to make it easier for student borrowers to repay their loans. Beginning in 2014, borrowers would be allowed to devote no more than 10 percent of their monthly income to repay student loans. The current cap is 15 percent…

The college takeover is not only ‘historic’ it is magical.

College aid loans will be higher and will be paid off slower, and yet this will save billions. Who can doubt it?

Still, notice how much more we are being told about this ‘historic’ legislation.

Now that it is safely passed.

This article was posted by Steve on Monday, March 22nd, 2010. Comments are currently closed.

4 Responses to “House Boosts College Aid, Saves Billions”

  1. NoNeoCommies says:

    We have already seen government restrictions that deny applicants the right to borrow from private sources to supplement government loans or grants.
    This will just make the situation worse as they somehow finagle a way to exercise Federal racism by loaning less (or nothing) to the “wrong” people and not allowing them to borrow from private sources at all.
    Then they will “forgive” the debts of the “right” people because they are so much more worthy.

  2. GetBackJack says:

    How come was able to pay for my college education myself? One lower degree and one advanced degrees? How is that possible? My own cash from working?

    Because I got there before the federal government decided I’d need help.

    Now the cost of a higher education is beyond the means but all of the most wealthy. And if you take student loans it is one of the only credit instruments YOU CANNOT BANKRUPT. You can NEVER walk away from that government guaranteed loan. You WILL repay or you will suffer the consequences.

    What evil lives in Washington, DC

    • TerryAnne says:

      “You WILL repay or you will suffer the consequences.”

      Unless you are a minority.

    • JohnMG says:

      …..”Unless you are a minority…..”

      From the looks of things, I’m fast becoming a minority. I guess he’ll just have to re-define that word to mean what HE wants it to mean.

      Yeah, that’s the ticket!!

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