Carter Conaway: If approved by Senate federal takeover of student loan industry allowed
(WASHINGTON DC) College students will no longer have a choice on where to obtain their student loans if a bill passed today by the House of Representatives becomes law. Democrats voted overwhelming to approve the bill. The legislation elminates the private lender option by June of next year.The House today voted down party lines to approve H.R. 3221 the Student Aid and Fiscal Responsibility Act of 2009 sponsored by Rep. George Miller (D-CA) which strips students of the ability to choose private lenders under the Federal Family Education Loan Program (FFELP) over the Federal Direct Lending Program (FDLP).
The public-private student loan program that has been in place since 1965 has provided funding for over 60 million Americans to attend college" says Congressman John Carter (R-TX). To answer success like that by voting to destroy the system makes no sense for students or higher education."
The
Federal Family Education Loan Program (FFELP) last year alone provided college loans for 6.4 million students at 5000 schools and has been the overwhelming student loan program of choice for colleges and students especially among Texas schools and students.
Todays vote if allowed to stand allows a total federal government takeover of the student loan industry.
It is estimated to cost taxpayers up to $50.1 billion over ten years when taking into account the market-risk of inevitable defaults which Democrats left out of their scoring on the bill.
The bill is also estimated to eliminate 30000 jobs nationwide.
Carter says the economic impact in Central Texas will be especially damaging.
In my district alone this would directly eliminate over 1000 jobs not to mention all the bankers and spin-off businesses that would be negatively affected. After speaking personally with these folks I know firsthand that many of these employees are the wives of soldiers at Ft. Hood the last people we would want to hurt while so many of their spouses are deployed overseas protecting our country.
If this becomes law it should be one of the first laws to be repealed by a new Congress in January 2011" says Carter.
And it should be a big reason for students and parents across America to make sure that Congress is indeed new" Carter added.
Congressman Mike Conaway (R-TX-11) also blasted the Student Aid and Fiscal Responsibility Act of 2009 making the following statement after voting no on H.R. 3221:
I am highly disappointed with my colleagues across the aisle for passing yet another piece of legislation that bloats our federal government. Today the House voted to abolish the successful and well-respected Federal Family Education Loan (FFEL) student loan program and replace it with a system of government-run lending
directly from the United States Treasury.
Over the past forty years the Federal Family Education Loan program has provided over 200 million loans and the opportunity for countless young men and women to seek higher education. These services are delivered at very little cost to families struggling to provide their children with a college education. This government-run lending program will be bad for students bad for schools and bad for American jobs. It will add layers of bureaucratic red-tape while providing only the minimum in services to students and their families.
The Democrats claim that this student loan bill saves" $7.8 billion" over ten years; but once the bills budget gimmicks are accounted for the cost is actually $50.1 billion. This bill has the potential to eliminate over 30000 jobs in the private sector and creates ten new mandatory federal programs.
The parallels between this takeover of our student loan system and the Democrats plan for a government takeover of our health care system are staggering and I simply could not support this bad bill."
