Health Care Reform.: Student loan reform's lessons

Student loan reform. Even if you're willing to look beyond the mix of bad taste from death to life, the historical analogy is not at a different level. The attack on Pearl Harbor started a war that the offender has lost. Health care reform, on the other hand, has student loan reform virtually no chance withdrawn by the free market fundamentalists. Indeed, it may one day become the cornerstone of the single-payer system that the Republicans fear. Most painful of all Conservatives, this last step, when the time comes, can not stir up much controversy. An earlier part of the health care reform itself.

Lies in the reconciliation bill House (will not be enacted until the Senate does it too) is half Reform Bill, this program on student loans. The second bill fills the reform, which began in the first years of the Clinton Administration to eliminate wastage of private banks in the granting of government loans to students. If you have not heard of him, for his "socialist" premise that the government can make its own money effectively without an intermediary has sparked controversy among men of middle them and their friends in Congress.


The program worked so well that a few years the government wanted to develop it. But this proved difficult to achieve because the loans were shown in the annual budgets of federal spending rather than investment. The solution was the transfer of direct lending to loans by private banks and non-profit guarantee. This change was carried out under the presidency of Lyndon Johnson in the Higher Education Act of 1965. extension of this legislation is public involvement to help people to attend college was roughly analogous to the extension of the bill for the health state involvement to help people care for health reform. It was his greatest weakness: an appeal to the private sector for both tasks (cutting and controls the collection of payments) to be achieved, the government was already reasonably competent.

Over time, the federal student loan reform government made it easier and simpler (and thus more profit) for banks to provide loans to students. As Steven Waldman said in his 1995 book The Bill, Congress first set up agencies to ensure "to outstanding loans granted by banks to collect the federal government does not. When he created the Student Loan Marketing Association for banks could not agree on loan but they could sell them to Sallie Mae. In 1992 the federal government spent $ 6,000,000,000 a year to create 15 billion in loans.