Bill Watch - Various

Oppose HR 3221 - Call your Senators, Call the President. This is an outrageous attempt by the president to push more big governement legislation. Loan forgiveness after 10 years if you work for governement, but all others are treated different. As if it isn't bad enough that government workers already have disproportionately higher wages and benefits than private sector counterparts, and now this. Worse yet, this is a scenario that promotes servitude. When the President made his statement about this in the SOTU, he showed his true colors. This is another deceptive, manipulative, class warfare - Socialist policy!

From K-College, we see some of the worst education policies in history coming out of Washington. This is but one example. Look at who Obama's Czar's are (radical agenda's).

Remember the most important thing; The Fed has no business in Education to begin with, it's departments are not Constitutionally authorized, and they interfere with States rights and local control, while coercing States to accept bad policy along with the money.

1993 REDUX? (kind of but much worse)

In 1993, Congress created the Direct Loan Program, one of the first bills signed by Clinton, which skipped private lenders in order to directly loan money to students.  The US spent billions of dollars, crowding out their former private-lender partners, in order to make more politically palatable decisions on lending rather than using normal private-sector lending practices.  However, inefficiency and waste in the DL program resulted in cutbacks in its funding over the past 17 years, with 2008’s DLP budget being just over $500 million.

Earlier this year, the House passed and the Administration supported a plan (H.R. 3221) to eliminate the Federal Family Education Loan program and shift all student loans to a government-run and taxpayer financed system.

It would also provide funding for renovating and constructing public schools and community colleges and ensuring that such institutions meet environmental and energy standards.
 

Obama promises to “take another one million students that when they graduate, they will be required to pay only ten percent of their income on student loans, and all of their debt will be forgiven after twenty years—and forgiven after ten years if they choose a career in public service” and guarantees that “To make college more affordable, this bill will finally end the unwarranted taxpayer-subsidies that go to banks for student loans.”

Rep Mike pence, facts: The President’s plan would expand the income based repayment (IBR) plan, one of the repayment options made available to borrowers under the College Cost Reduction and Access Act of 2007 (Public Law 110-84). Under current IBR requirements, borrowers are guaranteed that their monthly federal loan payments will not be more than 15 percent of their discretionary income and are entitled to loan balance forgiveness after 25 years. The President’s proposal would make the program more generous by lowering the 15 percent of discretionary income to 10 percent, and shortening the forgiveness time from 25 to 20 years (or 10 years for public servants)— effectively forcing taxpayers to pay off even more student loan debt. Many argue that making the federal government responsible for a larger share of student debt will only exacerbate already high college costs.

Earlier this year, the House Democrats passed and the Administration supported a plan (H.R. 3221) to eliminate the Federal Family Education Loan program and shift all student loans to a government-run and taxpayer financed system under the Direct Loan program. By allowing the government to take over all federal student loan originations, it would involve one of the largest expansions of a government program in recent memory. It would dismantle a system that has successfully served generations of students. Within a decade, the Federal Direct Loan Program would be a trillion dollar operation, with the responsibility for tens of millions of borrowers, making it one of the biggest banks in the world.

 

So now we have the other “public option” debate.

With all of the attention in politics going to government takeovers and job losses, one issue that has elements of both remains mainly in the shadows despite an activist Congress pushing it hard.  And in this case, the bill working its way quietly through Capitol Hill offices is an explicit single-payer plan that essentially nationalizes a private-sector industry.  That sounds like health care, but actually is the Democratic Party’s attempt to seize the student-loan industry — which provides a model for how ObamaCare will eventually follow the same path.  Dana Perino wonders why this has not received the kind of attention it deserves:

While Americans were becoming increasingly disenchanted with the health care reform proposals passed by Democratic majorities in the House and Senate, another government takeover proposal was in the works. — This time the Democrats want the federal government to be in charge of student loans. …

Last fall, the Democrats passed legislation to create a “public option” for student loans and the next step in its passage is in the Senate. The only think that’s holding Democrats back from passing this legislation is the tricky business of trying to get the health care bill passed in time for the president to have a grand signing ceremony before his State of the Union address.

If you thought the public option — as it was proposed for health care was bad, get a load of this: the student loan legislation does not just set up a government-run option for student lending, the bill makes the government the only option! It promises to bring complete federalization of the student loan process to a private marketplace. Iowa Democrat Sen. Tom Harkin’s plan for the bill is to jam this single-payer student loan system through an unpopular process known as “reconciliation,” all the while ignoring any of the bipartisan alternatives that have been presented. — A truly odd decision coming off a contentious health care fight that’s left the majority of Americans with a bad taste in their mouths.

 

Comments:

Are these people totally crazy? DANIEL FAULKNER IS A HERO, a police officer MURDERED in COLD BLOOD -- EXECUTION STYLE. If you put this man's honored name on a bill in congress, I demand that it be to a worthy cause!! If this bill were to assist children of fallen heroes to continue with their educations (as the title fraudulently suggests) it may be a different story.

Somebody in Washington needs to learn how to comprehend what it is they are reading -- and when you sign obligating ME to be bound by legislation, you better darn well make sure it represents a common sense, conservative approach -- AND WITH FULL REVERENCE AND HONOR FOR THOSE WHO HAVE GIVEN THEIR LIVES PRESERVING AND PROTECTING THE LIBERTIES AND JUSTICE I SO ENJOY!!!!

This pitiful excuse for legislation is nothing more than a pile of waste soaked in pork grease labeled as a memorial to an assassinated officer of the laws of this country.

Terry W. Gilmour
Georgia Voter

"History shows that the greater threat to prosperity is not too little government involvement, but too much," This is true in more ways than one allowing government control of our private sectors reduces our freedoms more and more. This is not about republicans or democrats this is about our freedoms and our children s freedoms to have the right to choose. Many have died to protect our freedoms. The FFELP program has been working for over 27 years so take the time to know it's value. This is not about saving money as the government claims, even that is questionable based on how they are coming up with these numbers. But again that is not the issue here. Fight for our freedom of choice Vote "NO" on this bill......
  • No more failed government-run programs!

Especially those that will pave the way for mandatory service for our children. Don't think so, then consider this. What happens when a student owes thousands of dollars to the goverment and is offered repayment in exchange for a few years of SERVICE? Technically speaking, it's not required service, but you do the math.

Send a message that the people are still in charge and not our corrupt politicians. Vote them all out in the next election.
https://www.1andDone.org
 
  • This is an FYI: HR 3221 eliminates the FFELP program for Direct Lending only. By doing this, we eliminate the consumers RIGHT to choose a financial institution to do their student loans. This eliminates competition, and as everyone knows, creates a monopolized system, and interest rates go up-thus not favoring the consumer. Everyone needs to educate themselves better on this bill, and understand that it may save the government money as they will control ALL student loans, but we as consumers will be footing the bill to do so. I have read through a lot of these comments, and hope that our legislators have better information and are not swayed by inaccurate views of HR 3221 and what it can do.

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    • This bill provides nothing for students but it sure provides a lot for construction firms (esp. Unions) possibly building new schools, which should be left to the states and communities. It also incorporates Early Childhood Learning, which has no place in this bill. Leave my kids alone!! How much volunteering (Americorps-taking advantage of the not so- rich -families) is going to be mandated with this? It's really too bad we citizens can't trust what we read.

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