Simpson Opposes One-Payer Student Loan Bill
Washington, September 17, 2009
Idaho Congressman Mike Simpson today opposed H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009. This bill does away with the Federal Family Education Loan (FFEL) program, which has been providing subsidized loans to students for more than 40 years and has over 2,000 lenders participating. Instead, it shifts all student loans to the taxpayer financed, government-run Direct Loan program, resulting in the loss of an estimated 35,000 to 50,000 jobs in the student lending industry.
“This bill limits choices for students and parents seeking educational loans at a time when the current economic environment has made it especially difficult to obtain the financing necessary to continue their education,” said Simpson. “My democrat colleagues continue to believe that increasing spending and expanding the reach of government into the lives of ordinary citizens is the answer to the problems facing our nation. I couldn’t disagree more.”
Simpson supported the Republican substitute to the bill, which would have extended the FFEL program through 2014 and created a commission to develop a new private sector model for student lending to streamline and modernize the system. Unfortunately, the Republican proposal was defeated.
H.R. 3221 passed the House of Representatives with a final vote of 253-171. It now moves to the Senate for consideration.