This would be smart:
Reforming the for-profit student loan system, which allows finance giants like Virginia-based Sallie Mae to make virtually risk-free returns thanks to government subsidies, was a top priority of President Obama. His idea, supported by most Democrats, was to take out the middle-man: Instead of subsidizing private lenders, the feds would completely take over origination of student loans.
The result: The Student Aid and Fiscal Responsibility Act, which the Office of Management and Budget estimated would save over $80 billion over 10 years (critics point out the number is inflated, because it didn't include money lost from defaults; but that's neither here nor there, because the government currently absorbs private losses anyway). Savings would be plowed back into Pell Grants -- much easier on students on the long-term -- and other higher education initiatives.
How could anyone oppose this? A system that privatizes the profits of such a system, while putting taxpayers on the hook for defaults, is wrong, no matter how you slice it. It would be objectively smarter to take that $80 billion in profits, and shift it over directly to students to make higher education more affordable.
Yet there are six Democrats who would rather do the bidding of the banking industry in their states than to do the right thing for America's students: Tom Carper (DE), Ben Nelson (NE), Bill Nelson (FL), Mark Warner (VA) and Jim Webb (VA).
Oh, and Blanche Lincoln.
MoveOn's first ad of the Arkansas primary points out how ridiculously misplaced Lincoln's priorities are:
Lincoln tries to justify her corporatism by arguing she's "supporting Arkansans", yet her actions speak louder than words. She's completely compromised, corrupt to her core, a wholly owned subsidiary of her state's biggest corporate interests.
If you're tired of the corporatist Democrat watering down or obstructing the progressive agenda, this is your big chance this cycle to send a message. Democrats need to learn that they either represent the people of their state (or district), or they will suffer the appropriate punishment at the ballot box.
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