Today Gail Collins in the New York Times writes an editorial about how the Student Aid and Fiscal Responsibility Act makes sense and is needed for today's American students:
The House will vote on the Student Aid and Fiscal Responsibility Act today. Stay tuned to our Twitter feed for updates on the debate and the vote.
Let us stop here and recall how the current loan system works:
1) Federal government provides private banks with capital.
2) Federal government pays private banks a subsidy to lend that capital to students.
3) Federal government guarantees said loans so the banks don’t have any risk.
And now, the proposed reform:
1) The federal government makes the loans.
....
If it all works out, Congress will have come a way toward fixing this problem, at least when it comes to federally financed student loans. There’s already a new law that forgives part or all of the debt for graduates who go into careers in public service. Terms will be easier for low-income debtors.
The House will vote on the Student Aid and Fiscal Responsibility Act today. Stay tuned to our Twitter feed for updates on the debate and the vote.
