Sep 17 2009
DeLauro Hails Govt. Control of Student Loans, National Curriculum
A particularly brutal piece of legislation has been passed. H.R. 3221 is called The Student Aid and Fiscal Responsibility Act (SAFRA), but it neither aids students nor does it remotely suggest fiscal responsibility. Naturally, Rep. Rosa DeLauro is the loudest champion of this intrusive and ultimately abusive bill, and its passage was by a strict party-line vote.
According to the Congresswoman, H.R.3221 “reforms the system of federal student loans to save taxpayers $87 billion – and invests $77 billion of those savings back into education, particularly by increasing funding for the Pell Grant program and creating an Early Leaning Challenge Fund to increase high-quality early childhood education and development for low-income children.”
Ordinarily, people cannot contradict themselves after only two words, but Rep. DeLauro does. Taxpayers CANNOT save $87 billion and spend $77 billion of the same money at the same time. They can’t even save $10 billion of what’s left over.
That’s because We the People will be on the hook for an additional $50 billion, and any student who applies for a taxpayer-subsidized government-controlled loan will have to perform community service (yes, much like convicted criminals currently have to).
According to Neal McClusky at CATO@Liberty, the CBO reports that this thing will cost an additional $50 billion. The CBO identified a net cost to taxpayers of about $600 million a year. Then it estimated SAFRA would cost an additional $33 billion after accounting for lending risk. Now, CBO estimates the cost of expanding Pell grants could be almost $11 billion greater than estimated. If you add all of those things together, the cost of SAFRA has flipped from a promised $10 billion savings to a $50 billion loss.
Meanwhile, all of the subsidies that the government hands out as Pell grants will be prohibited from going to private lenders. Only government lenders will handle Pell Grants, meaning the private student loan industry is finished. (This sounds a bit like that “government competition in health insurance”)
The reason for this is because provisions of the GIVE Act and Rep. DeLauro’s own Summer of Service Act demand students and young people for a civilian “volunteer” corps. H.R. 3221 fulfills the body count. Of course, volunteering in GIVE-speak will mean “serve or don’t go to college” for many young adults.
Finally, many opponents of H.R. 3221 denounce a $500 million grant to the Department of Education in order to design a national curriculum. Its being called unconstitutional, since providing education is the domain of the states, not the federal government
The collision of government-managed student loans, compulsory community service, a national curriculum, and national pre-school is a shocking intrusion into the lives of our young people. And, Rep. Rosa DeLauro on the wrong side of the issue again.
UPDATE: 03/19/2010 3:33PM. SAFRA has been attached as Division III of H.R.4872, the Health care reconciliation bill. But Title VI, the Defund ACORN Act, has been left off the bill.The sex-slavery activists at ACORN will continue to receive public funding to advise criminals on how to import, enslave, exploit, and sexually abuse vulnerable women and children.

