Enormous Federal Education Lending Reform Package Eclipsed by Healthcare Debate, but Moving Forward Nonetheless
Some news for those who focus on student debt issues: the House of Representatives did more than just pass a healthcare reform bill last night. From the Washington Post:
Legislation hailed by supporters as the most significant change to college student lending in a generation passed the House on Sunday night.
The student aid initiative, which House Democrats attached to their final amendments to the health-care bill, would overhaul the student loan industry, eliminating a $60 billion program that supports private student loans with federal subsidies and replacing it with government lending to students. The House amendments will now go to the Senate.
By ending the subsidies and effectively eliminating the middleman, the student loan bill would generate $61 billion in savings over 10 years, according to the nonpartisan Congressional Budget Office.