WASHINGTON — President Barack Obama on Friday renewed his call for the government to stop backing private loans to college students and replace them with direct financial aid to young people, a challenge to a program with strong congressional support.
Obama’s plan to eliminate the Federal Family Education Loan program could save $48 billion for taxpayers over the next decade, but critics warn it could turn the Education Department into a national bank. Lenders and some college officials oppose the proposal, which Obama backed as a U.S. senator and pushed during the presidential campaign.
Under that system, students at some colleges borrow directly from the government, while others get loans from banks, non-profits or state agencies that in turn receive subsidies from Washington.
Helping students?
Republicans are concerned about the costs of that and even some Democratic lawmakers oppose the switch. They argue that ending a successful lending program and giving more power to Washington and Education Secretary Arne Duncan would not help students.
by the associated press
Obama’s plan to eliminate the Federal Family Education Loan program could save $48 billion for taxpayers over the next decade, but critics warn it could turn the Education Department into a national bank. Lenders and some college officials oppose the proposal, which Obama backed as a U.S. senator and pushed during the presidential campaign.
Under that system, students at some colleges borrow directly from the government, while others get loans from banks, non-profits or state agencies that in turn receive subsidies from Washington.
Helping students?
Republicans are concerned about the costs of that and even some Democratic lawmakers oppose the switch. They argue that ending a successful lending program and giving more power to Washington and Education Secretary Arne Duncan would not help students.
by the associated press
