Subject: txt msm bias edu lbrty -
Overshadowed in the ObamaCare shenanigans the past few weeks are provisions weaved into the Democratic health bill that would require all federal student loans to originate with the government - the largest overhaul in decades. On the morning after the House passed the legislation, CNN Newsroom's Kyra Phillips did dedicate just thirty-four seconds to the government take-over of the student loan program. "The measure also reaches beyond health care to education. Another one of President Obama's top priorities - it will offer new help to needy college students," Phillips stated.
CNN's report cited a study saying the move would "help" students and save taxpayers' costs. But, according to ASLP's website, although the cost of all entitlement spending increased by 52 percent from 1991-2003, the cost of the private sector program declined by 100 percent.
"If the federal government is given responsibility for making and administering all loans, there the quality of service in loan administration could be poor, presenting challenges for borrowers and colleges,"
The Heritage Foundation's Dan Lipps wrote in 2009.
And just as all government projections should be taken with a grain-of-salt (if that), the White House estimate cited by Phillips does little to arouse much confidence. Since 2001, the FFELP actually returned more than $12 billion to the Treasury (due to faulty government estimates), and in every year since 1997 the Government Accountability Office found that the Direct Loan program spent more than it collected in fees and interest.
More than 500 schools have left the Direct Loan program to return to private sector programs.
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