EDITORIAL: Schoolyard bullies--Obama officials try to force out private lenders for student loans

The Washington Times ^ | November 30, 2009 | Editorial

[jazusamo]

Imagine what the outcry would be if the House of Representatives somehow passed a bill outlawing charter schools nationwide and, before the Senate had even considered the bill, officials throughout government began writing to school districts telling them to start planning to eliminate charters. The backlash would be enormous. How dare they pressure school districts to kill charter schools before the law actually has changed?

Yet that is exactly what Secretary of Education Arne Duncan, other department officials and several congressmen have been doing with regard to an attempted federal takeover of the entire student-loan industry. About 75 percent of colleges administer most of their student loans through private companies, backed by federal guarantees in the Federal Family Education Loan Program (FFEL). The other 25 percent of loans come through the Department of Education's own Direct Loan Program, which is the education version of health care's "public option." Colleges and families apparently think the private program provides better services, which is why it still serves such an overwhelming majority of the market a full 16 years after the Direct Loan Program was created to compete with it.

For reasons both various and spurious, congressional liberals long have wanted to eliminate the private lenders. Finally, with huge Democratic majorities in both chambers of Congress, they saw their chance. The House already has passed a bill, misnamed the Student Aid and Fiscal Responsibility Act (SAFRA), that would run all government-assisted student loans through the Direct Loan Program, eliminating the private option.

But that's just the House. Chances for passage in the Senate look increasingly dicey. Senators are becoming sensitive to public anger about the federal government's takeover craze, which already has snared banks and car companies. People also recognize that private lenders employ about 35,000 workers, many of whom would lose jobs...

[jazusamo]

Political actions of this sort by executive branch officials on department time are expressly prohibited by federal law.

Another example of Obama's executive branch breaking law.

[pallis]

Take over the banks, and become a single loaner. Take over healthcare, and become a single payer. It all makes sense, since the Obamao Organization intends to be the single employer, the single renter and land owner, and our single provider of all things. Obamao means to be the ONE.

[Pantera]

No loans unless you serve in our “volunteer” program.
No loans for home schooled kids.
No college loans if you are not willing to give up your guns.
No loans unless you vote for the tyrant.
...
...
Remember, We own you. (sign here please)

Tell me again what part of the Constitution authorizes anything close to this?

[jazusamo]

No doubt in my mind, Zer0 is for government control and he’s moving fast.

[Think free or die]

This is creepy, as is most of what comes from this administration. I can imagine what this government would like to require of student borrowers and their parents - intrusive information, "victim" status, appropriate party membership, "volunteer" community service, etc. etc.

I still remember how my cousins behind the Iron Curtain were denied university educations because they had the wrong class background . . . grandfather was a successful businessman before the war, and everyone had to be punished.

[loveliberty2]

"For reasons both various and spurious, congressional liberals long have wanted to eliminate the private lenders. Finally, with huge Democratic majorities in both chambers of Congress, they saw their chance. The House already has passed a bill, misnamed the Student Aid and Fiscal Responsibility Act (SAFRA), that would run all government-assisted student loans through the Direct Loan Program, eliminating the private option."

And they tell us that doing the same thing in the case of health care insurance will not eliminate "the private option"?

[jazusamo]

This is creepy, as is most of what comes from this administration.

Absolutely, it's really scary. Some of his supporters are starting to wake up, lets hope many more come around, I don't believe a lot of people realize just how far out Obama is.

[Think free or die]

Well, I've called my (PA) senators today about this monstrosity, health care, Copenhagen, and cap & tax. It's like spitting in the wind, but they are our employees and I make it a point to remind them every few days.

The senate staffers seem very uninformed about most of these developments, but I try to educate them when I call. They usually sound young and have no concept of what some of these policies may mean to us all.

[RebelTXRose]

I can’t wait to complete the FAFSA online in January/February. My daughter’s loan with WellsFargo has already been transferred to the Dept of Education ( I really don’t understand that part, but she is in charge of her loans.)

I wonder if they will ask registered party affiliation - he’ll get nothing for sure at that point.

[Think free or die]

Our sons are 14 and 16 . . . this may hit us hard. I hope that between savings and scholarships we don’t need loans . . . Even so, who knows what will happen to college admissions in the next few years - or costs.

[RebelTXRose]

I pray your sons are good students! They simply cannot afford not to be! I don’t know what we will do if my 18 yo isnt’ able to go to college due to finances. He wants to teach music - not a field you can sit out for a year.