As long as they are jamming healthcare through via reconciliation, the Democrats are about the use the same parliamentary dodge to pass another takeover that could never attract 60 votes in the Senate. They want to nationalize another sector of the economy, taking over student loans. Review and Outlook of the Wall Street Journal reports:
One of these controversial measures rewrites the Higher Education Act to ban private companies from offering federally guaranteed student loans as of this July. Congress has already passed laws in recent years discouraging private lenders from making loans without a federal guarantee. But most college financial-aid departments still want private companies to originate and service the guaranteed loans. That's because the alternative-a public option run by the Department of Education-has been distinguished by its Soviet-style customer service.
The Democratic plan is to make this public option the only option mere days before colleges send out their financial aid packages to incoming students. The House and Senate budget committees issued instructions last year to look for savings in the student-lending program, so the Democrats have prepared in advance their excuse to jam these changes through the reconciliation process.
Secretary of Education Arne Duncan portrays the changes as eliminating subsidies to private companies
So in the future, the government will become the sole source of education loans.
Hat tip: Ed Lasky
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