White House Faces Assault From Student Loan Lending Lobby
It's funny how things just slip away from the grasp of this administration, isn't it?
There's no reason in the world why those loans should be serviced by profit-making companies -- except for those morally craven members of Congress, of course:
WASHINGTON — Four months ago, it appeared all but certain that the White House and Democrats in Congress would succeed in overhauling the student loan business and ending government subsidies to private lenders.
President Obama called the idea a “no-brainer” last fall, predicting it would take billions of dollars from the profits of private lenders and give it directly to students, and many colleges were already moving to get loans directly from the federal government in anticipation of the next move by Congress.
But an aggressive lobbying campaign by the nation’s biggest student lenders has now put one of the White House’s signature plans in peril, with lenders using sit-downs with lawmakers, town-hall-style meetings and petition drives to plead their case and stay in business.
House and Senate aides say that the administration’s plan faces a far tougher fight than it did last fall, when the House passed its version. The fierce attacks from the lending industry, the Massachusetts election that cost the Democrats their filibuster-proof majority in the Senate and the fight over a health care bill have all damaged the chances for the student loan measure, said the aides, who spoke on the condition of anonymity because they were not authorized to discuss the matter publicly.
Why does this not surprise me?
Are Politicians Failing Our Lobbyists?
When will government of the people, by the politicians, for the corporations perish from this Earth?
Not soon enough!
the gop and the bluedog dems are fucking crooks
the rest of the dems and the white house
are just fucking stupid.....they keep pounding
their heads against a wall..doesn't if hurt NOW ?
Funny how to Ms. Madrak it is always Obamas fault and never that of the Senate.
“Why would anyone with a functioning brain believe this guy?”
Some guy with an eating disorder
I'm glad you said that because I have been sitting here reading this post and trying to figure out how anyone could be at fault but the senate. Short of taking money out of his own pocket to out bid the lobbyist, I don't know what the president is supposed to do about this.
Say what you mean. Mean what you say. But don't say it mean.
JUST SAY NO! If those spineless, ball-less Senators would think about the people who elected them instead of constantly thinking about their next election and how much money they can cadge for it, the measure would pass with flying colors. Obama needs to be Johnsonized---when Lyndon Johnson wanted something to pass, he went to the Hill and laid down the law--"You WILL vote for that f**kin' bill--end of story."
“The greatest evildoers are those who don’t remember because they have never given thought to the matter, and, without remembrance, nothing can hold them back,”
...with you. Obama is hell bent on not pissing anyone off on either side of the aisle and the result is he's not going to get a single bill of substance passed. There are too many DINO's that he, for some reason, doesn't want to slap around and get them in line.
:D
Study the symptoms not the virus...
that Reid and Pelosi are failing to take votes that point out the problem children politicians that are in lobbyists pockets. I'd be taking those votes and pointing them out every day on TV. Problem is that Reid and Pelosi are in cahoots with the lobbyists.
Republicans are liars and simply cannot be trusted.
that there wouldn't be enough representatives left to form a quorum!
“The greatest evildoers are those who don’t remember because they have never given thought to the matter, and, without remembrance, nothing can hold them back,”
The Neoliberal model at work.
statusquObama, change you can only pretend in
It's annoying!
Not that I am all that fond of the silly debt, but the author's implied solution is to make education a commodity that only the rich will afford. This is great for making more uneducated wing-nuts.
Higher education has been transformed from a mechanism for creating well-rounded citizens into a mechanism for creating obedient wage slaves. This transformation coincided with efforts to make higher education affordable to the middle & working classes, which in turn coincided with an overall decline in the quality of higher education. As Kevin Carey points out, "A 2006 study from the American Institutes for Research found that only 31 percent of adults with bachelor’s degrees are proficient in "prose literacy"–being able to compare and contrast two newspaper editorials, for example. More than a quarter have math skills so feeble that they can’t calculate the cost of ordering supplies from a catalogue."
The solution, IMO, is to return to the days when an ordinary high school education was sufficient for a productive workforce. Not everyone needs a bachelor's degree. Sure, tuition will be too expensive for most people, but the quality of a higher education will go up, rather than continuing its present downward spiral.
"Remove that wingnut video! It's annoying!"
I agree with you completely. But this site is loaded with right-wing videos. That is a major reason I don't visit this site as much as I used to. I for one am NOT a wingnut!
I just read at Kos that Shelby has put a hold on all Obama appointees. Here's a quote from the piece:
"Yesterday, Senate Republican Leader Mitch McConnell took to the floor of the U.S. Senate to block the confirmation process for all Obama administration appointees. McConnell said he was acting on behalf of Alabama GOP Senator Richard Shelby. Shelby's goal: force the administration to deliver a giant defense contract for aerial tankers to the European aerospace giant EADS, which would assemble the tankers in Alabama."
Guess who Shelby has been getting great big campaign donations from.
This is the kind of shit the republicans are throwing up as road blocks. I wish Reid would go to a microphone and talk about this and all the other bullshit the republicans are doing.
Say what you mean. Mean what you say. But don't say it mean.
From DemRapidResponse at YouTube:
Empty Chairs
When will government of the people, by the politicians, for the corporations perish from this Earth?
Not soon enough!
"This is the kind of shit the republicans are throwing up as road blocks. I wish Reid would go to a microphone and talk about this and all the other bullshit the republicans are doing."
But that would take courage! And I am afraid that the only thing that Harry Reid has accomplished in his term as Majority Leader is to convince people that all he has is a protuberant belly filled with something else than guts.
why do we have the vested interests of the parasites higher up on our priorities than the basic things like education?
the cost of education is a HUGE barrier to getting one.
Who exactly are these lobbyist influencing? I want someone taking names and reading them aloud.
Say what you mean. Mean what you say. But don't say it mean.
Citi-Bank serviced my loan in 85'
Study the symptoms not the virus...
then sold it
in fact, it was sold 3 times
confused the crap out of me
and it was sold so many times, I was ripped off for my payahead status each time, and once, I got billed, sent my more-than-minimum payment in on time, as was usual, they sold it, then the new fuckers said I was past due, because my last payment to the previous owner should have gone to them, the new owners. Then they said it was MY responsibility to get the payment transferred. I told them to fuck off, the previous loan owners deceived me and ripped them off, quit harassing me, get the money themselves, it was their problem if they were entering into legal agreements with thieves, and filed a complaint with the state's atty general. They somehow, own their own managed to straighten out THEIR problem.
me-oww!
being a student who is looking at four additional years in a large university, I'm really hoping he'll be able to pass something to help me with my student loans. I really don't like the idea of paying for these loans the rest of my life and if I can't get a good deal I'll end up going to a lesser college for two years instead. And it won't look as good on my application if I didn't go to the best school in my field even if I could have.
republicans will cheat your kids if you give them a chance!
republicanism/conservatism is a mental illness!
...dems had the majority in place to get this passed last summer. Why the hell didn't they?
"It is, but the fucking dems had the majority in place to get this passed last summer. Why the hell didn't they?"
Perhaps because of the Senate Democratic leadership? Or the White House's lack of leadership?
Half of those jokers are still pissed that Obama beat Hillery. So they really don't give a damn about him or us.
You have to be fucking kidding.
Not really. Obama didn't just kill McCain's political machine, he killed Hillary's too.
I'm sure you've seen comments on some of the boards from Hillary supporters that say such things as. "Things would be better if Hillary had won." Well some of those people are in your Congress. (smile)
No matter what comes out of their mouths, some of these people react just like you and me... They take things personally, they carry grudges, (Liberman), and some just don't like the guy. Last time I checked they're still human.. why should we be surprise?
Besides, the whole birther thing was started by a Hillary supporter. I used to have the link of his first filling, but I'm sure it's still somewhere on the net.
"It's funny how things just slip away from the grasp of this administration, isn't it?"
Not particularly funny. More like pathetic -- and dangerous!
never blame the weak leadership in the house and senate
if obama is forced into fighting his own party, what happened to carter will happen to him
enjoy president mittons, cuz i am leaving the country
What's with Mr. Teleprompter?
8 years of a prez not being able to speak english, and you think that a prez who wants to make sure he speaks correctly is a bad thing
eff you
loans?
so they are fighting to keep being forced?
whahahahahahahahahahahahah
The 60 Minutes footage is fine, but that segment alone would have been a better clip. The glibertarian idiot speaking is arguing against the government helping anyone go to college at all. The solution is pretty easy, and the Dems have proposed it - bypass the banks entirely, since they're screwing over students. In the SOTU, Obama also mentioned a 10% of salary cap on student loan repayment, and a 20 year limit on asking for the money back, 10 years for those going into public service. Robert Reich's suggested some more progressive versions of all that, but it would be a great idea. Now we'll see if actually happens.
but that is obama's fault i guess
isn't simply how to pay for college; it's also the quality of the education.
If this individual is from an organisation that is 'non-partisan', how come he is throwing words around like 'socialism'? As if 'socialism' is a bad thing?
And don't 'we' want everyone who wants to go to college to go to college, even if they can't personally afford it? It is a good investment in the future and the economy, and it pays for itself through future tax revenues. And if students graduate without being in debt, that is only a good thing for the economy.
Say hello to the information age, and goodbye to Reaganomics.
but that line of reasoning perpetuates the college-as-job-training mentality that has been disastrous for the quality of higher education. One's motivation for attending college shouldn't be tied to one's desire for higher pay.
"One's motivation for attending college shouldn't be tied to one's desire for higher pay."
Actually, I agree with you completely. However, by the same token, colleges and others should not use higher pay as a rationale for attending their college or any college. Fifty years ago, when I entered my freshman year at my college, virtually all we heard was how much more money we would earn in our lifetimes simply because we were attending college, especially THEIR college. My reaction? To coin a phrase: YEAH, SURE!!
has demonstrated some aptitude,commitment and has the necessary preparation to succeed of course they should a shot at college. I don't think the mere desire is enough.
Hasa Diga Eebowai
until they can't suck anymore blood.
it works in the States but up here student loans are generally handled by the regular financial institutions with the government acting as a guarantor in the event of default and the system seems to work reasonably well. Once graduates start repaying their loans it boosts their credit rating which is not a bad thing. Grants and bursaries are still either government or private charities. There is never enough, of course, but the graduation rates are quite high and default rates manageable. What is the nature of the problem in the States?
Hasa Diga Eebowai
tuition increases at twice the rate of inflation. Meanwhile, the quality of education has plummeted. At the same time, the general perception among desirable employers is that a bachelor's degree represents the same thing that a high school diploma represented a generation or so ago - that is, the minimum acceptable level of education. Declining accreditation standards have allowed dozens of fly-by-night colleges to mushroom across the country, and these institutions, along with symbiotic lenders, lure working class kids and underemployed adults into overpriced degree programs that rarely deliver the promised results. As Kevin Carey observes, "the biggest problem with American higher education isn’t that too many students can’t afford to enroll. It’s that too many of the students who do enroll aren’t learning very much and aren’t earning degrees. For the average student, college isn’t nearly as good a deal as colleges would have us believe...Nobody knows which colleges really do the best job of taking the students they enroll and helping them learn over the course of four years. After decades of inaction, some recent efforts have been undertaken to collect that information: It now exists, but colleges and their powerful (and virtually unknown) lobbies will not permit the public to see it. As a result, colleges are far less focused on student learning than they should be, and consumers haven’t a clue what to do and have come to believe, mistakenly, that the most expensive colleges are also the best."
The apparent ineptitude of Obama , his administration and the Dems in real world politics ... this is getting to be just unbelievable .Why don't they just get it over with and join the Republican party !
Insanity , it is what it is , there is no understanding it .
My 19 year old daughter couldn't secure a student loan last semester so the Department of Education sold her loan to Nelnet. They're collecting 8.5% interest and they overcharged her by $5800. We've been sending faxes and calling for months trying to sort things out. In case you haven't heard of Nelnet, they was recently investigated by the Inspector General's Office for allegations of misuse of federal student loan programs. A United States Department of Education audit revealed that since 1993, Nelnet has abused a loophole in federal tax legislation that allowed the company to receive a higher interest rate on specified loans, generating $278 million from taxpayers and possibly an excess $1.2 billion in profits Nelnet has disputed the findings of the audit.
Ultimately, U.S. Department of Education Under Secretary Sara Tucker allowed Nelnet to keep the $278 million windfall. It is worth noting that Tucker had ties to Nelnet through the Hispanic College Fund, where she is the former Chief Executive Officer.
Nelnet has also made financial contributions to United States congressional campaigns, a practice that some have argued is improper given the fact that interest rates and lending preferences are often set by congressional committees.
In February 2007, New York Attorney General Andrew Cuomo launched an investigation into alleged deceptive lending practices by student loan providers, including The College Board, EduCap, Nelnet, Citibank, and Sallie Mae.
The New York Times reported in August 2007, that Senator Jon Bruning, the former Nebraska Attorney General, allowed Nelnet to renege on a $1 million settlement the company reached with Bruning in April 2007. Nelnet was accused of industry wide kickbacks, improper inducements, and gifts from student loan providers to colleges and universities. Nelnet quickly shut down a Nebraska investigation into its activities by agreeing to provide $1 million to the state in support of a national financial aid awareness campaign. Bruning decided in August 2007 to forgive Nelnet its $1 million obligation after the company announced that it had reached a separate $2 million settlement with New York State Attorney General Andrew Cuomo to end the AG's investigation into Nelnet's business practices. Mr. Bruning called the Cuomo’s investigation of Nelnet and other student-loan companies “ridiculous” and “political.” According to Bruning's spokeswoman, Bruning decided to forgive Nelnet's obligation because "it doesn’t make sense to create two funds for the same purpose." Officials from Nelnet and Union Bank & Trust, which are both owned by the same family, gave $16,100 to Bruning for his Senate election campaign, including $2,300 from Nelnet President Jeff Noordhoek, just 16 days before the two would appear together to announce the $1 million settlement. In his interview with the Omaha World-Herald, Mr. Bruning called himself “a friend of Nelnet” and said he would “never apologize” for his relationship with the company.
So it's pretty clear that our Government has no problem with fleecing students and it's been going on for quite a while.
Which the White House will promptly cave in to.
the nation’s biggest student lenders to represent me in Washington, let alone waste my senator & congress person's time pleading their cases to stay in business. This, after being bailed out and giving out bonuses. This needs to stop, and it needs to stop NOW. I'm not knocking anyone here, but it seems that in a lot of ways we're becoming as spineless as some members of the Democratic Party in that we were all so vocal and fought so hard during the election, and now it seems that so many of us (myself included) now pretty much type reactions to much of what the Republicans are doing to our country. Looking back, it now seems to me that was the easy part. We are all going to have to start actively contacting our representatives, being vocal and speaking out at every opportunity, and doing whatever it takes to see that President Obama can follow through.
I see more and more people are starting to see that to the 100 people in the Senate... They don't care who the President is, they will do as they please in a manner that brings them the most personal power and money.
I would say that the House has a valid complaint when they say that they've sent over a hundred bill to the Senate that are just sitting there.
the gubment does not need to take over anything else regarding the banking system. it will only cause more problems. if they take it over it can only get worse.
in case you idiots have forgotten the democrats have had control since 2006. nothing has happened since then. just the facts lefty morons.
And from the time those majorities were seated until the time Obama was inaugurated, they didn't have the super majorities required to override Stupor Mundi's veto power. S-CHIP ring a bell?
Don't try to confuse the issue with half-truths and gorilla dust.
Actually, I went to college in the 60s on student loans run by the government and they worked really, really well. They were low-interest, no one made a profit, the loan was sitting there waiting for me at the beginning of each quarter, and I was able to pay all my loans off on schedule and get on with my life without a huge burden of debt. Privatizing these loans turned a great idea (helping low-income young people get a college education) into yet another Republican rip-off of the working and middle classes. It makes me want to cry to see how hard we have made it for today's college students.
Everything about neoliberalisms is about making life harder for the middle class. And they come up with all these ethical sounding notions like 'moral hazard', or the profit motive, or 'work ethic', but again and again it is just about their own personal enrichment, and trying to make a profit out of everything.
And something else, beyond money, it is about power. The neoliberal elite types want to have power over the ordinary citizen. Therefore, they want to take away power from the state (us) and give it to themselves. That is how what should be public health insurance was turned into '401k' corporate owned health insurance, making workers dependent for their health on the corporation they work for. That is why they privatized student loans, and other basic services. It is a transfer of power from the state (We the people) to the private sector (the economic elites).
I think there should be a healthy private sector, but they should be kept healthy by regulation, and basic services and the infrastructure everyone uses should be provided to all by the state, without a direct charge.
ad buys by big banks (or astroturf "Students for the Future") now allowed by the United Citizen's decision.
And that may be the point.
Demonstrate the danger of allowing corporate speech to drown out citizen speech during the primary season, and even the GOP may be scared enough to want to do something about it before November.
And why do we have to listen to his ill thoughtout BS. He knows from experience that engineering is more difficult than all of those other majors? Really? And he really thinks that public education is unnecessary? the same arguments he makes against public higher education can be made against public primary and secondary and the same arguments others make for public primary and secondary can be made for public higher education.
Many students whom I've been around have used part of their student loans for vehicles and travel etc and much of the governance of higher education is more about the enhancing the same private interests that benefit from student loans. Higher education itself has been compromised by a materialistic distraction..
Comments are closed on this entry