Student Loan - Loans and Debt Consolidation

STUDENT LOAN OVERHAUL PASSES IN HOUSE OF REPRESENTATIVES EXAMINER COM

Student loan overhaul passes in House of Representatives

Rep. George Miller D-CA and House Speaker Nancy Pelosi D-CA AP Photo/Harry Hamburg

According to Representative George Miller D-CA who is a lead sponsor of the bill, We can either keep sending these subsidies to banks or we can start sending them directly to students.

Approximately half of the savings will go into the Pell Grant Program, while the rest would go to other educational programs. According to Janet Hooks of the Chicago Tribune, the remainder would be allotted to education initiatives such as grants to improve preschool education, renovate school buildings, improve community colleges, [and] curb college drop-out rates and fund programs to support black colleges and universities.

Despite the savings, many conservatives oppose this bill on the grounds that this will lead to a government takeover of education. They are also concerned that this could cause some job loss within the banking industry.

If passed by the Senate, the bill is scheduled to take effect on July 1, 2010.

Concerning the bill, House Speaker Nancy Pelosi D-CA stated, Our three pillars for economic recovery were investments in education, investments in new energy policy for creating new green jobs, and the investments, of course, in health care. Weve done our energy bill, our climate change legislation. Today we are doing the education piece.

In a White House release, President Obama stated,

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