"Students Not Banks"

In all the hubbub about health care reform, its hard to hear the calls for college loan reform. As a primer for those who might not know, it's far cheaper for the Government to loan money directly to students than to funnel that money through banks. Basically, the government guaranteed not only 97% of the loan itself, but also a 9.5% (!) return on the loan, at zero cost or risk to the banks lending the money. This blanket giveaway to banks is a very easy and obvious way to cut government costs while increasing the funding available for other programs, like Pell Grants.

The House of Representatives has passed the necessary legislation, which is pending in the Senate. FireDogLake has started "Students Not Banks" campaign to get that legislation passed by reconciliation in the Senate, now.

President Obama proposed, and the House passed, a plan to cut out the bankers from student lending that will save $87 billion. That means more money for students, and none to the bailed out banks.

But the banks aren't happy. They want to hijack Obama's planand steal tens of billions for themselves in a fake "compromise." We can't let them get away with this.

Sign our petition to the Senate: don't give another dime to bailed out banks. Pass direct student lending now. - FireDogLake

I am a huge supporter of helping out students and recent graduates. From forgiving college loans to providing loans to recent graduates who need a downpayment for a car, or first-and-last-month-rent for an apartment, I think one of the best ways to stimulate the economy and build our future is to invest, today, in our youngest voters.

Please go sign the petition. The fight for young people is the fight for our future.

[Update] Lowell at Blue Virginia wrote about this issue today.