FOR IMMEDIATE RELEASE03/11/2009
Campaign for America's Future Praises Obama Plan for College Affordability
WASHINGTON – Campaign for America’s co-director Robert Borosage today said President Obama's budget plan outlines the strongest commitment our nation has made in a generation to making higher education more affordable for America’s families.
President Obama’s plan for reforming the American educational system is a strong first step that will move the country the right direction by making college affordable to every child who has earned admission. The president gets it right, and understands we cannot thrive as a nation if we follow the conservative policies that have increasingly priced college out of the reach of working families. In today’s global economy, it’s critical that American students are given every opportunity to compete and succeed.
The Obama plan sensibly ends the $4 billion federal subsidy to banks for making student loans. The plan supports direct lending instead, and would redirect the $4 billion savings to students. By providing loans directly to students rather than going through the banks, the federal government would save taxpayers $4.48 per $100 in administrative overhead costs. Taxpayers stand to save around $180 million a year, while expanding educational opportunities.
The only loser in the new program are the banks who have mismanaged such funds in the past, using valuable taxpayer dollars to pay CEO salaries and lobbyists, among other things. But now banks are mobilizing to defend their role. Congress should pass the Obama plan, move to direct lending, and begin making college affordable for all deserving students once more.
We urge Congress to fulfill its promise and support the Obama plan to put a college education within reach of every American student.