Posted on March 30, 2010
After President Obama signed the recent reconciliation bill into law on Tuesday, Sen. Lamar Alexander took aim at provisions in the bill which will eliminate fees paid to private banks that issue student loans. Under the changes, federally guaranteed loans to students will be administered by the U.S. Dept. of Education, which Alexander calls a "Washington takeover" of the private student lending system.
"19 million college students are going to be unhappy when they find out that this latest Washington takeover overcharges them on their student loans to help pay for the new health care law and other government programs," Alexander said in a statement. "The government will borrow money at 2.8 percent and loan it to students at 6.8 percent, then spend the difference on more government. Any savings should go to the students, not the government."
“The Obama Administration's motto is turning out to be: ‘If we can find it in the Yellow Pages, the government ought to try to do it,'” he said.