Eliminating the Federal Family Education Loan Program

Monday May 04, 2009

Last week President Obama repeated his campaign goal of saving $48 billion over the next decade by eliminating the Federal Family Education Loan Program.

At the present time, while some students borrow directly from the government, a large portion get loans from banks and from agencies that get huge subsidies from Washington DC.

His proposal will face stiff opposition from the lenders who have long had a lucrative part of the process. Others will say it is not the role of the federal government to become a bank.

But prior paradigms have been set reeling this past year and the Federal government's role has moved to center stage. Although we need the stimulus package to set us free from the deep economic recession, we will also need to pay the money back in the future.

This is an opportunity to save $48 billion over 10 years -- or the savings could provide more money for student access -- at a time when higher education is more important than ever before.

Perhaps it could do both.

Category: Government

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