Kyle Bell

The United States House of Representatives today voted to increase Pell Grants to college students in need of financial assistance and voted to reform how student loans were awarded. As part of the health care reconciliation bill, these reforms will take away federal money that previously went directly to banks to provide loans to students. Instead, the federal government will now directly lend to students, saving $60 billion of taxpayer money over the course of 10 years.

Basically, these loans were giant subsidies to private banks. The banks received low interest loans from the government and when they signed loans with students, the risk was passed on to the government, which was responsible for defaults. This bill gets rid of the middle man. “What we have is a miraculous opportunity,” said Secretary of Education Arne Duncan. “Simply by stopping the subsidy to banks, we can plow those savings into our students.”

By voting against the reconciliation package in the House, every Republican member has voted against saving $60 billion in unnecessary spending to banks. The Republicans also voted against removing deals in the original health care proposal, such as the so-called “Cornhusker Kickback”, where money was directed to Nebraska and not any other state. I thought that they were against government waste? They’ve proven, yet again, that they will say one thing and do another.