McDonnell challenges Obama on Student Loan Takeover
By Steven Osborne | Friday, April 2nd, 2010 | Catch-All
Governor McDonnell has been a leader in the rebirth of Federalism that we are seeing in our nation today. He released a statement today blasting the government takeover of the student loan industry.
Statement of Governor Bob McDonnell on Federal Student Loan Legislation
RICHMOND- Governor Bob McDonnell issued the following statement today regarding the federal takeover of the student loan industry.
“When the President signed the Health Care Reconciliation Bill into law this week he also simultaneously expanded the reach of the federal government deeper into yet another major industry: student loans. Included in the health care bill is an unrelated policy measure that places all of Virginia’s colleges and universities and students into a federally-administered student loan delivery system. This provision was never debated. Virginia parents, students and college administrators never received an opportunity to appropriately comment on a sweeping new policy that will have an immediate impact on the citizens of Virginia and our economy.
Student loan provider Sallie Mae, a private originator of student loans, is based in Reston, Virginia. The Wall Street Journal reports that the signing of this onerous legislation will force the prompt layoffs of 2,500 of their 8,600 employees. This will mean significant job losses in Virginia where we already have a 7.2% unemployment rate. The effect of the job losses will not just be felt by those who suffer them, but will ripple throughout our economy.
The federal takeover of the student loan delivery system will take away yet more choices from American parents and students. Now the federal government will have monopoly control of the entire industry. Virginia colleges and universities must now move to the mandated federally-administered system, taking choice away from our institutions of higher learning as to which system of student loan delivery works best for their purposes. Virginia colleges and universities will have just four months to move from the current system to the federally-administered one. This will all occur while incoming college freshman are in the middle of applying for loans to pay for their higher education. It will greatly complicate matters for students and parents across the Commonwealth during an already stressful and difficult period.
The expansion of the federal government into the private sector is now occurring at an alarming pace. From the auto industry to healthcare to student loans, Washington continues to grow bigger, while the choices available to American citizens in the free market grow fewer. The legislation signed this week places the student-loan delivery system entirely in the hands of the federal government, providing fewer funding options for students and parents, forcing colleges and universities to adhere to a one-size fits all federal system in a matter of months, and again increasing the power of the federal government. It will cost a number of Virginians their jobs. And it all occurred with little to no public conversation or input by burying the provisions in a health care bill. I urge Virginia’s federal representatives to seek all possible means by which this policy can be reformed.”
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About the author
Steven Osborne is a grassroots conservative activist from Central Virginia. He is currently furthering his education at Liberty University in Lynchburg, Virginia. In addition to writing for Bearing Drift he is also a columnist for the Christian Law Journal.
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27 Responses to "McDonnell challenges Obama on Student Loan Takeover"
Wonder if we have standing to sue them over this too – we should look into it, I have no problem spending another $350 to get this ridiculous government off my back
I am so glad we have Governor McDonnell and AG Cuccinelli right now.
@NovaMom – Amen to that!
Has our Governor no shame? Just after failing to pay the required contribution to VRS, and providing a loan instead, he seems to totally forget that fact, and criticizes the President for taking legitimate steps to save billions of dollars so more can be loaned to students. I guess the best defense to poor fiscal decisions is to go after others to keep the spotlight off oneself. According to a recent study by the Pew Center on the States, keeping up with funding requirements in good times or bad is characterization of those states in the best shape. Regretfully, given McDonnell’s recent action to balance the budget on the back of the state’s employees to the tune of some $700,000,000, I guess he knows how to wiggle out of the requirement for fiscal integrity.
Who’s the lady in the picture?
And while I’m on the subject of the picture — Cuccinelli has crazy eyes.
Steve,
That would be Virginia Senator Jill Holtzman Vogel
Thanks, Steven.
She looks a little like Michelle Bachmoan
I mean that in a good way, btw.
Mike, our governor has nothing to be ashamed of. He sharpened his pencil and the numbers did not add up.. We are broke Mike, the credit card is maxed out and getting another increase in the limit will just bury us deeper. Where does this nightmare end? It ends when the Governors of more states take a stand and force Obama to knock off the serial abuse of power.. people are broke and tired of having more tax burdens piled on them. Obama says he is spreading wealth but Governor McDonnell is calling his bluff and doing his part to prevent the spread of poverty.
Sounds like “The Jobs Governor” lost more jobs…And now he is crying as this new programs saves all of us billions. The Congressional Budget Office estimates that relying on the federal direct loan program to make all loans would save about $87 billion over ten years.
Frankly I can not understand why the Governor would be upset that we are going save 87 BILLION dollars… What is wrong with these people?
Look guys, cop a grip.
If the Federal government is going to guarantee the loans, then what is wrong with the Feds providing the loans directly and avoiding the costs of the profits to the middle man?
I am open to arguments the government has no business guaranteeing such loans. I put my kids through college under the pay as you go program without any more assistance then that which was provided under the tax code. However I do realize that not every potential college kid is going to be as fortunate as my kids. Perhaps their parents were not as wealthy/fortunate (yeah right) or perhaps their parents did not use birth control and had more kids.
Perhaps someone who makes as much money, or more, then I declines to pay for their kids’ college expenses. What is such a child to do if they want a college education?
If the government is going to take on all the risks, why insure the profits of the middle man?
I’m in college, and paying for it without government assistance, though the University does receive public funding. If I can manage it, anyone can. Eliminate the fed’s backing and involvement in student loans and put the money into tax cuts, if we focus on free-market reforms, we will reach a level of economic prosperity where college will be much more accessible. The State should also privatize higher ed, there is no real benefit realized when you encourage college attendance to the point of students majoring in Art, LGBTQ theory, and Sustainability. Privatization would direct studies to more practical pursuits such as Business, Technology, Medicine, Economics and History.
PWConservative,
So how, without any assistance of any sort, are you paying for college? I suspect a claim divorced from reality.
We are broke Mike, the credit card is maxed out and getting another increase in the limit will just bury us deeper.
They know that, James. They aren’t here to debate in good faith; they are here in the best Alinsky tradition — toderail the conversation away from what Obama is doing.
Ever notice how Mike Barrett starts out with a bold lie? (e.g. “Obama has created jobs”). The tactic intends to get us arguing about the LIE. This distracts from the real issue — the economic policies of Obama and the growth of government at a time of unheard of national debt. This is what they don’t want to address, except perhaps by leading off with other lies.
The debt, the growth of government and the concomitant loss of individual liberty, are the only real issues now. No amount of scorn, mocking, and disgust is too good for these trolls. They are here to divide and conquer.
Saltlick, The do as I say, not as I do politics of Mike’s ilk will repatriate Independent voters from middle class working Americans. Voters are feeling the pinch of a stumbling economy bouncy as a dead cat..
Mike, paying less attention to words and more attention to deeds make sense..
Look, as an independent, I understand the need for deficit spending. I would expect that even Republicans understand the need for it. It was George Dubyah Bush that got the ball rolling on the bailout of the banking industry.
Even the seven Republican Senators who co-sponsored the deficit reduction bill ended up voting against it. They co-sponsored it before they voted against it! Deficit reduction is a good thing until you get some Democrats to vote in favor of it and then it becomes bad.
Yes, I am perplexed that none of the ultra partisans actually took me to task on the facts of my post, prefering instead to simply attack my politics. Fact is, as pointed out by others, Governor McDonnell may have balanced the budget on the backs of the poor, the infirmed, the sick, and children, but when in the end it required statesmanship to correct years of under funding the VRS, he abandoned his so called fiscal principles, and took the easy way out. He made the VRS a loan that others will need to pay back. Now he keeps attacking the President for the stimulus while touting the expenditures of those funds in helping Virginia. What part of leadership does he not understand?
That’s because we’ve stopped caring what you think, Mike.
That might be too bad, JR. Because, in this case, he has a point. McDonnell didn’t “close a $4 billion budget hole without raising taxes”..as he’s been claiming on TV ….because A) the budget includes tax increases, not as big as the ones Kaine wanted, but tax increases none the less, and 3) he borrowed a big chunk of change from VRS that has to be paid back, the difference between that and “deficit spending,” is purely a matter of semantics.
Yes, but regretfully, J.R., like his side kick, Brian Kirwin, resorts to quips when he does not have a rational response. That’s too bad, because frankly, after we all get absolutely bored and embarrassed to death by the charade going on with the little seven bowing to the will of the tea party, we really need some right thinking republicans to redefine what the party really stands for. Frankly, continued obstructionism may work now, but in September, when health care works, the economy is growing, student loans get made, and tough regulations on the financial sector have been passed, what will citizens be mad and angry about? The world coming to an end did not work very well, and frankly, hiding on the sidelines while policy is made is a tough sell at election time.
MB-there will still be some appeal to the suprisingly large contingent (10-20% of the electorate?) who are still mad that there’s a black guy in the White House. Since most of those folks have been voting Republican for the last 40 years anyway, I don’t see how the GOP gains much by that.
Yes, I guess my point is that just as President Obama ran as a centrist and won Virginia, so did Governor McDonnell. Now they were from opposite sides of the political spectrum, but they adopted the same political strategy. Here we have seven intelligent candidates with attractive resumes running to please the most radical and fringe elements on the far right of the political spectrum. Now I know it is a primary, but eventually the chosen candidate is going to have to face the full electorate. I guess the question is, can a far right candidate who had to grovel to win the primary win this district? I sure hope not.
It’s creepy when Mikey and Stevie start talking to each other like this. It reminds me of certain scenes in “Turtle Diary.”
Before we inhale the smokescreen of mind-altering arguments about how much money will be saved in fees paid to banks and loan administrators and how it will enable students to receive greater loan amounts rather than lesser amounts — can we please have a serious discussion and a real explanation from the PotUS and this Administration regarding why interest rates that will be charged to students will be higher than they currently are? Students will have access to more money at higher rates of interest. Much higher rates. Not sure how taking out the “middle man” justifies charging our kids higher rates, but the next generation is being financially hosed on a number of levels. Maaaannn, I’m glad I’m not them.
Sadly, our kids ARE them. It’s our fight to wage. We need to clean house in the House and in the Senate and then send Obama back to Chicago’s southside to build his Presidential Library. Maybe ex-Gov Blogojovich will have a chance to make Obama’s license plate. Is there really that much of a difference in how they operate that Blagojovich should be in the big house while Obama is in the White House????
Christ. A “government takeover” of student loans? Really? Does anyone here even bother with the facts anymore?
“Facts are stupid thing.” – Ronald Reagan.
“things” — Reagan didn’t get the grammar wrong, I did.
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