Obama Wants To Cut Out College Loan Middle Men
Yet another way we could save billions every year and get them back into the hands of those who need them most.
Obama wants to end the decades-old, dual system the federal government uses to advance loans to students to pay for college. Under that system, students at some colleges borrow directly from the government, while others get loans from banks, nonprofits or state agencies that in turn receive subsidies from Washington.
The president’s proposal would switch the federal student loan system entirely to direct lending from the government.
Obama has claimed that the change would save at least $48 billion over the next 10 years â€” money that could be funneled to student aid. But Republicans are concerned about the costs of that and even some Democratic lawmakers oppose the switch.
I don’t anticipate that this will be an easy fight because that’s A LOT of money to be pulling away from some pretty powerful interests, but the idea does make sense…especially if we want more folks going to college.