Government Takeover Of Student Lending Industry Impacts Arkansas Banks
Press Release
Government Takeover Of Student Lending Industry Impacts Arkansas Banks
Buried within the health care "fixer' legislation was another government takeover; this time of the United States' student lending industry. This is causing student lending companies to lay off workers and forcing Arkansas banks like Arvest to stop offering federally-insured student loans.
For decades American families have relied on the Federal Family Education Loan (FFEL) program to ensure access to affordable higher education financing and the tools they need to make the right borrowing decisions to pay for college. With the passage of the Obama-Pelosi-Reid health care bill students may eventually have to depend on the federal government to finance their education if they cannot afford to pay cash out of pocket.
U.S. Representative John Boozman (R-AR) voted against a takeover of the student lending industry in September.
"The greatest problem with higher education isn't the availability of financing, it's the high cost," Boozman said. "Shifting the source of funding from private banks to the taxpayer and creating a gigantic bureaucracy does nothing to lower the cost of college."
Boozman voted against health care "fixer' legislation that tacked on the power-grab of this industry on March 21.
"While I support federal education programs that help Arkansans attain the quality education they need for the careers of tomorrow, I do not support the ending of the FFEL program and shifting virtually all student lending for lower and middle income families into the hands of the federal government. Private business has been effectively managing student loans and providing families with more choices for years. To think that the federal government can run this industry better is ridiculous. This is just another surprise in the "health care" bill that expands government, increases entitlement spending, and unnecessarily increases risk to our taxpayers." Boozman said.
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