We at the Campaign for America’s Future congratulate the Senate today for passing historic student-loan reform, via a budget reconciliation bill that also contains historic health-care legislation. This reform ends wasteful billion-dollar bank subsidies with a shift to federal direct lending, and invests much of the savings to students.
But before we break out the bubbly, the House needs to pass the legislation later this evening.
This reform is a no-brainer, and Americans know this. According to a CNN/Opinion Research Corporation poll released yesterday, nearly two-thirds of Americans support allowing the government to provide loans to students directly, instead of banks.
Why is there so much public support behind student loan reform legislation?
First, Americans are surely sick of the schemes and scams of the private student loan industry. By cutting the banks out as middlemen, along with their subsidies, taxpayers stand to save over $60 billion over the next decade.
By ending the federal handout to banks, a good bit of the savings can then be redirected to students in the form of Pell Grants and more affordable loans.
With reform :
But again, the House has YET to pass this landmark reform. We are so close, though. See how your Senator voted by clicking here.  Did they stand with students or bBanks?
Also, understand the money and lobbyists behind your senator’s vote by reading our report, “Money-Changers in the Senate.”