Barack really does understand how messed up the college loan system has become:
Obama's plan focuses on eliminating the relationship between private lenders and universities, which he said would save billions in taxpayer's money. Instead of banks disbursing loans to college students through financial aid offices and then having the government make subsidy payments to banks, all loans would be distributed from the government through a direct loan program.
"One way we can make college more affordable is by reforming a wasteful system that profits private banks at the cost of taxpayers," Obama said. "Through a direct loan program, this year alone we would've saved $6 billion that could've funded one million need-based Pell Grants for struggling students."
Obama's proposition, which he originally pitched in 2004, comes in light of the rising cost of public and private universities and recent scandals involving illegal arrangements between school and private lenders. Over the past five years, according to the College Board, the cost of public universities for in-state students has ballooned 35 percent, and the cost of private colleges and universities has risen 11 percent. In February, Northwestern President Henry Bienen announced a 4.96 percent increase in tuition for the 2007-2008 school year.
"(The plan) doesn't solve all the problems, but by taking this one step we can start making college more affordable for every American," Obama said.
http://www.nytimes.com/uwire/uwire_MRP051620076664939.htmlI'd be ever more impressed if he got that done instead of national service. The banking industry will fight it like hell because we're a strong source of long-term income for them. The truth is that effect of high costs and high rates hasn't really begun to be felt by most students and parents.
I'm going to cough up more after we win on March 4th.
How many years you been off the Islands? Come back at all?
Feel more than free to join the discussion on my Obama blog.