国产视频

In Short

Covering the Battle Over Student Loan Reform

As our readers know, Higher Ed Watch has followed the debate over President Obama鈥檚 proposal to eliminate the Federal Family Education Loan (FFEL) program and shift to 100 percent direct lending quite closely. In fact, we have written 60 blog items on that topic over the last year. Now that Congress is enacting the president鈥檚 plan, we thought it would be a good time to highlight the best of our coverage. We have chosen a dozen posts that we hope brought clarity to a complex debate and kept our readers informed of the back-room deals and political maneuvering going on behind the scenes:


  • , Feb. 26, 2009

In our initial report on President Obama鈥檚 student loan reform proposal, we praised the White House for recognizing 鈥渁 couple of hard truths about the federal student aid system鈥: that the way the federal government had been financing Pell Grants is a huge mess and that turmoil in the financial markets has caused irreparable damage to the FFEL program. We wrote that the president鈥檚 plan deserved credit for trying to solve both problems at once.


  • , March 5, 2009

This post laid out the battle lines that the Obama administration would face in trying to advance its proposal. We noted that the president鈥檚 toughest fight was not going to be with the Republicans but with 鈥渆ntrenched interests in his own party鈥 who had close ties to the student loan industry. We also predicted that guaranty agencies and state-based non-profit lenders were going to be a particularly powerful force on Capitol Hill against reform.


  • , April 1, 2009

Higher Ed Watch contributor Jason Delisle, the director of the Federal Education Budget Project, took on some of the student loan industry鈥檚 most dubious arguments against having the government move to 100 percent direct lending. His comments were excerpted from remarks he made at a 国产视频 event last March on 鈥.鈥


  • , April 7, 2009

In this post, we explained why the White House had the upper hand in its battle against the student loan industry. We argued that with the expiration of an emergency law that had been propping up the FFEL program fast approaching (and the Obama administration and Democratic Congressional leaders opposed to extending it), preserving the status quo was no longer a viable option.


  • , April 15, 2009

We were the first to make public Sallie Mae鈥檚 alternative student loan reform proposal, which sought to preserve the ability of FFEL lenders to originate federal loans on behalf of the government. In the post, we outlined the proposal and showed how it was aimed at  keeping Sallie Mae as the predominant student loan company in the country.


  • June 25, 2009

Higher Ed Watch revealed a proposal that the (EFC), a trade association for non-profit student loan providers, had been quietly shopping to a select group of Congressional officials. Under the plan, non-profit lenders would be guaranteed a no-bid contract to service the loans of up to 100,000 student loan borrowers in their home states. In the post, we asked whether EFC had 鈥渃ompromised on its key loan program principles — — to guarantee its members a role in the new loan program.鈥 Democratic Congressional leaders ultimately included this proposal in the student loan reform legislation to win over wavering Democrats.


  • , Sept. 15, 2009

Jason Delisle, a former Republican Congressional staffer, argued that the Republicans鈥 fervent support for FFEL showed that the party is 鈥渄eeply confused about its core values鈥 and about how the federal student loan program operates. 鈥淚n their support for the FFEL program, it appears that House Republicans want big government too 鈥 they just want to dress it up as private enterprise,鈥 he wrote.


  • ,  Nov. 19, 2009

After learning that some of the student loan industry鈥檚 most fervent supporters in the financial world were potentially putting their students and schools at risk by to prepare for a possible shift to direct lending, we decided to write up this fictional account of of how these aid officials might explain themselves.


  • , Dec. 9, 2009

In this post, we outlined our main objections to the “” that Sallie Mae was championing. Overall, we argued that the plan did not represent real reform but instead would keep as much of the status quo in place as possible.


  • ,  Dec.10, 2009

This post revealed that the Pell Grant program was facing a budget emergency that would require a massive infusion of funds to keep the maximum award level funded at $5,550 for the 2011-12 school year. Ultimately, this crisis d as Democratic lawmakers realized they needed to use savings from ending FFEL to shore up the Pell Grant program in order to prevent students from having their grants cut by as much as half.


  • , Jan. 19, 2010

In this post, we gave our readers an early heads-up about the central role that Sen. Kent Conrad, the North Dakota Democrat in charge of the Senate Budget Committee, . We correctly predicted that Conrad, a budget hawk with , would object to the Democratic Congressional leaders鈥 strategy of using an outdated Congressional Budget Office direct loan savings estimate to score the bill when , was available.


  • , Feb. 23, 2010

In this post, we argued that the massive lobbying campaign that Sallie Mae has launched in favor of the “” was not, as Sallie Mae argued, about preserving 鈥渃hoice鈥 and 鈥渃ompetition鈥 in the federal student loan program, or even about protecting jobs. Instead, it was about ensuring that Sallie Mae would be able to keep originating federal loans at these colleges so that it could continue to cross-sell its more expensive private loans to students through their schools鈥 financial aid offices.

As always, we appreciate your readership, no matter what side of the debate you鈥檝e been on.

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Covering the Battle Over Student Loan Reform