14,252 Student Advocates and Counting

What Do You Get When the Government Runs a Program?

August 30th, 2007 by Student Loan Tax

You can see the effects of government-run programs everywhere and it’s not pretty. The Federal government fully manages the Veterans Administration. To say that it’s an embarrassment is an understatement: Medicaid, Medicare, Social Security, HUD, the list goes on. None of these programs is well run or well funded. Not one accomplishes the goals for which they were established.

Recently, we saw the deadly consequences of Federal inaction in Minnesota, where a major interstate highway bridge, known to be structurally deficient, collapsed. This country has tens of thousands of bridges that are obsolete or dangerous, and Congress isn’t doing anything about it, even though it’s Congress’ job. Congress promises funding, but doesn’t allocate it, or allocates it, but diverts it.

Students can bet that a Federal student loan lending program will become just one more competing priority when it comes to funding. Congressional Democrats are coming out of the woodwork to support these measures right now, but where will their support be when it comes time to choose between funding student loan lending programs and bridge safety programs? Or anti-terrorism concerns? Or heath care? Or pension bailouts?

Right now, Congress doesn’t have to make that choice. FFELP lenders make money available to students for their tuition needs, and they put the issue of student aid above the fray of Congressional funding. Under the plans in front of Congress right now, funding for education will have to scrap it out with every other Federal program.

When it comes time to cut the budget, the Congressional Democrats will preach the importance of self-sufficiency, and how it’s really the responsibility of the family to plan for and provide a college education, especially if the Congress must choose between funding higher education and their pet pork barrel projects. Rest assured, Congress places no higher priority on higher education funding than it places on any other Federally- funded program. Veterans, poor people, health care, senior citizens, cities, bridges, and students – they all need money, and there’s only so much to go around.

When it comes to changing the system that’s in place, the Congressional Democrats can’t sign fast enough to put their support on a bill, but when it comes to funding, where will their priorities be? Congress had to create all of the other Federal programs, too. Those same Senators and Representatives had to pledge their support for every other line item on the budget. When it comes time to put up the money, where will their priorities lie?

Borrowers are the center and focus of a FFELP lender’s priorities. Borrowers don’t compete with other borrowers for funds because the FFELP lenders have enough combined resources make the billions of dollars in loans that students need each year to attend our nations colleges and universities.

Tell your Senators and Congressmen that you don’t believe that their support of student loan reforms will translate in to more funding for students.

You can make a difference
Call your Senators
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Tell your friends the truth about the proposed student loan legislation

Posted in Student Loan Tax, Campaign News, Student Loans, College Funding, College Student Relief Act |

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