Health Care Reform And Federal Student Loans

Floor Speech

Mr. THOMPSON of Pennsylvania. Mr. Speaker, competition used to be viewed as a way to lower prices and improve services. A rental car company's slogan was, We're number two, so we try harder.

Competition apparently is no longer a virtue under this administration. The health care bill seeks to put health care for Americans in the hands of government bureaucrats, but it also seeks to put guaranteed student loans solely into the same government hands. Unlike the car company, I'm not sure the government can say that it ever tried harder, sought innovation, or went out of its way to help a student.

The Federal Family Education Loan program is administered primarily by private companies today, and under the proposed change, private lenders will be barred from making government-guaranteed loans. Some 30,000 employees across the Nation will lose their jobs. So much for worrying about the Nation's unemployment.

Choice and competition will die, but the Democrats say it will save money, about $87 billion, money they have already spent on Pell Grants and $9 billion diverted to pay for health care reform. Instead of that savings, look for poorer service, increased defaults, and higher administrative costs--like dealing with the IRS.

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