Overhaul to Save $61 billion Over 10 Years

It is little wonder that education bills have not received the attention they deserve. With health care reform and partisan debates polarizing politics, it is easy to see how most any other topic have been swept under the rug. In a landmark decision, congress has passed a bill that will overhaul the massive Student Loan industry and remove intermediaries.

Commercialized banks, such as Sallie Mae and Nelnet have been receiving federal subsidies in order to give students loans to pay for college since 1965. By increasing interest rates and eliminating risk, the banks were receiving a tremendous amount of money, acting as a middleman between the government and the student.

The bill, which was wedged in the massive health care bill, was passed with a vote of 56 to 43 in the Senate and 220 to 207 in the House. Republicans with strong ties to the commercial banks were unanimously against the bill.

What does this mean for American students? Well, government officials have forecasted $61 billion in savings for taxpayers over 10 years, according to a March 25th article in the New York Times. In addition, it will allow more in Pell grants to be given out to low-income students. It will also help millions of students manage previously unmanageable amounts of debt.

While some worry that this government takeover will just increase deficit spending, there is something satisfying in seeing a government that fights for the low-income, low-opportunity working class and not major corporations that cost students more and more every year. Now may not be such a bad time to be in college after all.

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