Chairman Miller wrote the following letter to the editor in Sunday's New York Times.
“Industry Lobbying Imperils Obama Overhaul of Student Loans” (front page, Feb. 5) didn’t tell the whole story. In truth, lenders are fighting to save a system that allows them to reap billions in profits at the expense of students.Learn more about why the original NY Times article was inadequate, as well as the Student Aid and Fiscal Responsibility Act.
President Obama’s proposal would save taxpayers $87 billion — and redirect those funds to students instead of banks. It would make college more affordable without costing taxpayers a dime.
Lenders’ claims about job losses have proved overblown. This legislation would allow lenders to continue servicing all federal loans — ensuring high-quality customer services for borrowers and preserving jobs.
Lenders would compete for these contracts based on the quality of service they offer, including default prevention. In fact, two of the five performance criteria for current direct loan servicers — including Sallie Mae — are tied to default prevention.
It’s not news that lenders don’t like this bill, but college students overwhelmingly do. We can’t let their voices, or the points above, get drowned out by well-heeled lobbyists.
George Miller Washington, Feb. 8, 2010
The writer, a California Democrat, is the chairman of the House Education and Labor Committee and the author of the Student Aid and Fiscal Responsibility Act.
