Obama Urges Student Loan Reform

Obama Urges Student Loan Reform
by AcademicInfo | Mon, 04/27/2009 - 04:01

President Barack Obama has courted controversy by proposing plans to change the way student loans are distributed nationally. The move which aims to increase college attendances while keeping costs down would end federally subsidized student loan programs and move the government as the primary financier.

Speaking at the White House, President Obama said, “We have a student loan system where we’re giving lenders billions of dollars in wasteful subsidies that could be used to make college more affordable for all Americans.”

Money raised from the change is estimated to be as much as $48 billion over ten years and would be enough to cover as much as 95 percent of the President’s plan to increase Pell Grants for eligible students. “There are few things as fundamental to the American Dream or as essential for America’s success as a good education,” the President added.

Opposition parties fear the move would increase the government’s role within the sector which could lead to possible administrative inefficiencies.

Obama countered this by saying, “This is not about growing the size of government or relying on the free market – It’s about whether we want to give tens of billions of tax dollars to special interests or whether we want to make college more affordable for 8.5 million more students.”

Reference sites
Badger Herald
Diamondback Online
The Washington Post
UPI
CBS

Tags: education, obama, student, student loan reform

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