Mar 12, 2010 5:48pm

Pelosi: House Will Attach Student Loan Reform To Health Care Bill

ABC News’ Mary Bruce Reports: House Democrats plan to attach reform of the federal student loan system to the health care overhaul legislation, Speaker of the House Nancy Pelosi said today. Folding student loan legislation into the reconciliation bill for health care reform “fixes” could allow the Obama administration to pass two of their top domestic priorities with a simple Senate majority vote.

“Joining these two bills presents a remarkable opportunity for our country,” Chairman of the House Education Committee Rep. George Miller, D-Calif., said yesterday.

Republicans opposing the deal have questioned this use of the reconciliation process.

“The government takeover of health care is about to get weighed down by a government takeover of student loans,” Senior Republican on the House Education Committee Rep. John Kline said in a written statement.

“Surely congressional Democrats would not use budget reconciliation – a complex budget maneuver designed to rein in the cost of government – to increase the size, scope, and cost of government,” he said.

On Tuesday, six Democrats sent a letter to Senate Majority Leader Harry Reid stating their support for student loan reform but arguing that “we must proceed toward this objective in a thoughtful manner that considers potential alternative legislative proposals.”

Pelosi noted that it “has always been part of the plan” to include student loan reform in the reconciliation process because of the rules outlined in the 2009 budget resolution. Furthermore, Politico reports that Democrats may have to include student loan reform in the reconciliation bill to meet the cost-saving requirements of reconciliation.

Without including it in the reconciliation package it would be unlikely for the student loan bill to pass the Senate. 

The Student Aid and Fiscal Responsibility Act would cut out the middle man from federal student loan programs and give students the chance to borrow directly from the federal government instead of from banks. The bill, which passed the House in September, would also greatly expand the Pell grant program for low-income students.

When the bill passed the House it had an estimated savings of $87 billion over ten years. Since then that number has dropped to $67 billion as colleges have joined the “Direct Lending” program and reduced the amount of revenue that would be available for new spending.

Not surprisingly, banks have lobbied aggressively against the bill.

User Comments

Looks like they will try anything to pass the so called health bill, more back room behind closed door corruption.

Posted by: earl | March 12, 2010, 6:12 pm 6:12 pm

i can hear the speech from obama to the dems…we are about to embark on a mission in which many of you may not return but you have laid down your careers for nancy and my wishes of passing a bill that no one wants but the left of the left and illegal immigrants that we will legalize through recociliation.

Posted by: catman | March 12, 2010, 6:39 pm 6:39 pm

this weeks episode of “hey lets all jump on swords” starring nancy pelosi.

Posted by: catman | March 12, 2010, 6:44 pm 6:44 pm

All I know that if this monstrosity does pass, I’m so afraid that the people will revolt. It’s just another bill to “hurt” the working Americans and give more to the people that are too lazy to get out and make and living for the “numerous” children they create. Something has to give…..I know you won’t see it here but June 1 in the state of Ohio Acorn is Banned, this is great news…..watch Fox tonight, they will tell the whole story, dont miss it!

Posted by: lyineyes1956 | March 12, 2010, 6:48 pm 6:48 pm

All the giveaways is just away to entice people to vote Obama back in office in 2012. Then he will proclaim himelf dictator and all the people who were on the dole will then have to become a good little worker in order to keep the politburo in perpetuity.

Posted by: Downwithsocialism | March 12, 2010, 7:41 pm 7:41 pm

Now help me with this..How does a student loan bill have anything to do with health care? So they want to take over the health care and decide who gets loans to college. This administration is the most out of control government actions ever and they need to be stopped.

Posted by: Tammy | March 12, 2010, 8:01 pm 8:01 pm

Now help me with this..How does a student loan bill have anything to do with health care? So they want to take over the health care and decide who gets loans to college. This administration is the most out of control government actions ever and they need to be stopped.
Posted by: Tammy | Mar 12, 2010 8:01:04 PM
Tammy, I agree with you 100%, but it’s only going to get worse. I just read an article that there is ‘in the works’ a tax on sodas and pizza since those two items are a ’cause’ of obesity, and, therefore, increase healthcare costs! You read it right… an extra tax on pizza. Next will be hamburgers, then ice cream, then fries, then…
It’s a shame that there has been so much wheeling and dealing going on in DC just to get this bloated bill passed, and when you thought it was as bad as it could get, here comes a ‘tag along’ aka the Student Loan Reform, to force those on the fence to vote YEA on the bill or be blamed that not only have they killed innocent people by “denying” them healthcare, they are also against education by “denying” students loans directly from the government. And I thought Obama said just a few months ago “We’re broke”. I must be mistaken.

Posted by: Shoe | March 12, 2010, 9:08 pm 9:08 pm

I’m so tired of the “The Sky is Falling” remarks from everyone against everything the gov’t proposes. Do you understand how out of control the costs of education have gotten? It absolutely makes no sense that in order to go to school, you end up coming out with hundreds of thousands of dollars in debt – making it almost not worth going at all. The banks are profiting off of all of this. You may not agree with everything the Obama administration is proposing. Fine. Then what is the solution? WE NEED SOLUTIONS. For health care AND education costs. At this point I wish they would just decide on SOMETHING and get it over with.

Posted by: Student Loan Reform NOW | March 12, 2010, 9:37 pm 9:37 pm

Pelosi is AMAZING! Why not fold cap n trade in with healthcare too?..I mean come on folks..this having to debate, and ammend, the waiting, talking, town-halling, it’s just so boring and takes soo long..these folks work too hard..just roll everything into one big up or down vote..beautiful.

Posted by: cindy | March 12, 2010, 10:23 pm 10:23 pm

I’m surprised but please that government will deal with the student loan problem. Right now, banks charge way too much interest on their student loans. Just like the too high health insurance premiums, as family’s budgets overcharged in these areas, they don’t have the money to buy other items. This translates into a failing economy, except for the banks and the insurance companies!
Why should there be a middle-man for student loans, when the government is the one lending the money?

Posted by: Lydia | March 12, 2010, 11:28 pm 11:28 pm

stop “attaching” extra crap to a bill. it’s a sneaky way to control something else.

Posted by: Rob | March 13, 2010, 12:11 am 12:11 am

How about not spending money to mail a letter to everyone telling them that they are gonna get a mailing from the census? Let’s reform government!

Posted by: Rob | March 13, 2010, 12:13 am 12:13 am

HAHA..ROB! YOu got yours too? For every American who thinks that government can bring down the cost of ANYTHING..receiving that letter from the census alerting me that I will get a letter from the census ought to be proof enough to dispell that notion. IMAGINE..someone in that dept thought that would be a GOOD idea, and a good way to spend money…BRING ON THE MASSIVE HEALTHCARE SAVINGS!!! HAHAHA!

Posted by: cindy | March 13, 2010, 7:34 am 7:34 am

Reducing the deficit….We can rid ourselves of the senate, congress, presidential advisers and possibly even the president himself. Wind up Harry, Stenny and Nancy and watch them go!

Posted by: longawaiting | March 13, 2010, 8:17 am 8:17 am

What does student loans have to do with healthcare? How much more will this cost?
This week, Obama told a fundraising audience in St. Louis that “it’s nice to get out of Washington.”
WHAT???—He spent his first year in office JOY-RIDING to FOREIGN countries — many times with his family — at our expense. He made more foreign trips, during his first year, than any U.S. president before him (10 trips involving stops in 21 nations).
Now, with the fate of HCR, the Campaigner-In-Chief is visiting American cities to ram Obamacare down our throats.
This is the most corrupt administration in American history.
MOST AMERICANS DO NOT WANT GOVERNMENT-RUN HEALTHCARE!

Posted by: "LAND OF THE FREE"??? NO MORE! | March 13, 2010, 12:56 pm 12:56 pm

To complete her ‘ultimate’ wishes of legislation as a San Francisco liberal, she could propose to process a 3 in 1 package bill consisting of government run health care, government-run student loan and naturalization of undocumented alien. Lets see how much support she could get.

Posted by: austin | March 13, 2010, 1:22 pm 1:22 pm

Austin..you forgot cap n trade and the criminalization of table salt..I mean think BIG, think SUUUPERRRR BILLLL!!!

Posted by: cindy | March 13, 2010, 1:32 pm 1:32 pm

All joking aside, think of how perverted this has become..an overwhelmingly large and expensive healthcare bill, that most Americans are against, is being made less expensive by adding a student loan bill which will make money off the interest our kids will pay the government for their loans..and this money will supposedly be applied to the above mentioned healthcare bill that most Americans don’t want.

Posted by: cindy | March 13, 2010, 1:44 pm 1:44 pm

GOD HELP US! Obama has lots of “bribe” money to make deals to ram Obamacare down our throats. This corrupt administration has no problem governing “against” the will of the people. Hopefully, the party will be over in November.

Posted by: PROUD AMERICAN | March 13, 2010, 5:57 pm 5:57 pm

It’ll soon be government run everything. The only employer left will be the government. We need a change in leadership…no more Pelosi and Reid!

Posted by: Ruth | March 13, 2010, 9:11 pm 9:11 pm

Attach legislation to allow anyone with a CHL to carry a gun anywhere in the United States. See how fast Democrats kick it out.
They’re getting desperate to pass this thing before Obama throws another temper tantrum like he did in his State of the Union speech. No one on Capital Hill wants to be seen as hindering education. Good move by Queen Nancy.

Posted by: oonogil | March 14, 2010, 12:39 am 12:39 am

Where’s the media?? Were this George Bush, they’d be screaming from the rooftops that the eeevil Booosh and GOP was forcing this on the public, and every news update would tout the polls running heavily AGAINST this BS….but no….just reporting it like it’s being dictated to them, like good little fellow travelers.

Posted by: Dee | March 15, 2010, 12:39 am 12:39 am

So – the Democrats response to the citizen’s revolt against all the pork weighing down the mandatory health insurance bill is to load on MORE pork?

Posted by: Wow | March 15, 2010, 2:49 am 2:49 am

The US needs to pay for the 50% unfunded fiscal hole in Medicare before it adds another unfunded healthcare program.
Alan Greenspan said that Medicare is 50% unfunded causing amazing debt. Rep. During the healthcare summit Paul Ryan reported that Medicare has a $38 Trillion deficit, $260,000 per taxpayer. The most paid per taxpayer is $7,000/yr in 2009. If we doubled taxes now and dedicated half to Medicare, we could pay off our Medicare debt in 38 years. Medicare debt moral: NEVER use debt to pay entitlements.
If the government has no more debt financing of entitlements, the US may avoid going bankrupt; If the government repudiated its debt, the result would be hyperinflation; making money worthless, destroying the middle class and starving our people; this happened to Germany in 1923.
O’Bama and Pelosi would have to increase taxes 229% to pay for their $12.7 Trillion in Welfare ($10.3trillion) and National Health ($2.4trillion) entitlements, $9,000/taxpayer per year. They’re BORROWING it; If we do nothing, can hyperinflation be more than two to four years off?
In August 2009, the Washington Post said that O’Bama’s programs will be an additional $9trillion in the red by 2019. A USA Today story on 5/19/2008 estimated that the household liability for government programs is $61.7 trillion, or $531,472 per household. That is more than four times what Americans owe in personal debt such as mortgages.
Tax receipts are down the most since the great depression, yet Mr. O’Bama is increasing spending by 25%. Brian Riedl reports, “in the short term, President Obama has offered a budget that would increase federal spending to a peacetime-record 24.5 percent of GDP by 2019 — not even counting the health care plan. Because tax revenues cannot keep up with this spending growth, the President’s budget would add $9.1 trillion in new debt over the next decade. It would double the national debt to 82 percent of GDP by 2019.”
What will you do about this? Ask your congressman to vote down these entitlements.
If the Democrat leaders in congress wish to have universal healthcare, they might add an additional 20% ‘VAT’ sales tax as the Europeans do. That’s the only option that doesn’t decrease the number of jobs.

Posted by: Caswell | March 15, 2010, 8:25 am 8:25 am

Totally wrong thing to do. Nothing should be attached to the health care bill in any way.

Posted by: Rick McDaniel | March 15, 2010, 9:51 am 9:51 am

I work for a bank in the student loan department and firmly believe the ENTIRE process needs to be reworked. But having the government take control of who gets how much when at what price, which will eliminate thousands of jobs across the US, is NOT the answer! How about regulating how banks calculate interest? How about regulating how much colleges can charge their students for attendance? How about better educating students on their financial options? How about NOT denying someone a federal grant because you assume Mommy and Daddy are going to help them pay for college?
Please, Mr. Obama, we put our faith and trust in you when we voted, we believed you would change things for the better, please don’t make us think we did the wrong thing.

Posted by: Kimberly | March 16, 2010, 7:34 pm 7:34 pm

Are all of you really so dense? Turn off FOX News and start thinking for yourselves.

Posted by: Mark | March 18, 2010, 12:54 am 12:54 am

The American people seem confused. First there is this rush to pass the “much needed taxpayer subsidies” but only for low income earners, now the last minute student loan legislation for taxpayer funded Pell grants but only for low income earners – all government administered. Is anyone starting to connect the dots yet? Next is amnesty folks.

Posted by: Independentthinker | March 20, 2010, 12:23 pm 12:23 pm

We are currently fighting two Wars that are costing us a fortune with no way out and our young people being killed and maimed everyday for the past 8 years that’s twice as long as WWII and you’re all worried about student loans,who cares.

Posted by: tom | March 20, 2010, 7:51 pm 7:51 pm

How selfish a country are we when healthcare is not available to all? Wake-up call: Next time your pizza delivery guy comes to your door, do a quick survey and find out if he/she has health coverage. And why shouldn’t low income folks be able to take out low-interest student loans without making the commercial banking industry even more money? It’s about time that low-income Americans (and yes, many of them are working) get a break. By the way, I am not low-income. I am an upper-middle class, graduate-school educated person who feels it’s time to give back.

Posted by: Kim | March 21, 2010, 4:39 pm 4:39 pm

I dont care what they do with health care as long it doesn’t make things worse but as far as student loan reform is concerned they need to do something fast. As one of the other replies mentioned the cost of an education, which a lot of us try to get to “make a living for the children we make” is outrageous. When I finish school this year I may find myself moving my family from our small house into a 2 bedroom crappy apartment and having to take a second job just to make my loan payments. I would have been better off just working a couple fast food jobs and never starting my degree.

Posted by: Tom Manning | June 4, 2010, 11:07 am 11:07 am

Hey Tom, I understand your frustration but with the insane debt that results from people trying to better themselves by going to school people might start injuring themselves and families may lose loved ones. You speak as if you either do not have student loans or had someone there to help you cover your school costs and did not expect repayment. Check out this page to see how the outrageous educational costs in this country are affecting just a few.
War sucks but is nothing new to this country and somewhere along the way we as a people forgot that to stay free we have to fight. The men and women who serve made their choice and I thank them for that but you need to spend some time accepting that people will die and be hurt and stop posting worthless comments that do not contribute to the topic at hand.

Posted by: Tom Manning | June 4, 2010, 11:37 am 11:37 am

I got an email about student loans from one of firends. I am not sure it’s true or not. I hope ABS looks into it.
Here is the email:
Sun, 12 Dec 2010 11:25:51 -0500
Monday on Fox news they learned that the staffers of Congress family members are exempt from having to pay back student loans. This will get national attention if other news networks will broadcast it. When you add this to the below, just where will all of it stop?
35 States file lawsuit against the Federal Government
Governors of 35 states have filed suit against the Federal Government for imposing unlawful burdens upon them. It only takes 38 (of the 50) States to convene a Constitutional Convention.
This will take less than thirty seconds to read. If you agree, please pass it on.
This is an idea that we should address.
For too long we have been too complacent about the workings of Congress. Many citizens had no idea that members of Congress could retire with the same pay after only one term, that they specifically exempted themselves from many of the laws they have passed (such as being exempt from any fear of prosecution for sexual harassment) while ordinary citizens must live under those laws. The latest is to exempt themselves from the Healthcare Reform… in all of its forms. Somehow, that doesn’t seem logical. We do not have an elite that is above the law. I truly don’t care if they are Democrat, Republican, Independent or whatever. The self-serving must stop.

Posted by: rebe72 | January 11, 2011, 12:26 pm 12:26 pm

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