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Obama Kicks Off Radical College Aid Revamp

The administration's goals are both ambitious and controversial

By Clay Dillow, Newser Staff

Posted May 4, 2009 12:05 PM CDT

(Newser) – President Obama’s education proposals have taken a backseat to the economy and health care, but the changes he proposes in student lending are about to ignite a fierce lobbying battle, the Washington Post reports. Obama’s plan to move all federal funds for student lending to the Department of Education and to expand the Pell Grant program, outlined in his budget passed Wednesday by Congress, would effectively make the grants an entitlement like Medicare and Social Security.

The idea would spell the end of federally insured private lending, shifting some $94 billion over a decade into Pell grants. The aim is to save money by cutting out the middlemen, and to boost access to higher education for those who need it most. Opposition will come from private lenders and GOP congressmen. Wisconsin Rep. Paul Ryan called it "an autopilot entitlement immune from congressional oversight at precisely the time when we should be reforming existing entitlements."

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President Barack Obama's education goals are lofty, and to some smack of nationalization of private industry. (AP Photo/Charles Dharapak)

President Barack Obama's education goals are lofty, and to some smack of nationalization of private industry. (AP Photo/Ron Edmonds)

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If you just look at it from the practical aspects of how the program functions, it's really hard to justify. Why do we need a middleman?"
- Rep. Timothy H. Bishop, Democrat from New York

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COMMENTS

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Showing 3 of 10 comments

QueenAlli

Jul 14, 2009 1:51 AM CDT

I would rather owe the gov't than a private bank. While they won't forgive your debts - they are a lot easier to negotiate with when it comes to payments.

QueenAlli

Jul 14, 2009 1:48 AM CDT

??????????????????????????????????

Alexandria

May 5, 2009 5:28 AM CDT

Why do you care about who goes to college? Let them do as they wish. If college-educated Americans can't find Iraq on the map, then maybe the issue isn't with the student. Obama is trying to make it financially possible for people who want to go to college but cannot otherwise afford it. Why is that such a bad thing?

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education • Barack Obama • Department of Education • higher education • scholarship • Pell grants • college loans

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Obama Kicks Off Radical College Aid Revamp