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Jeff Cohen

Jeff Cohen

Posted: March 27, 2010 10:23 AM

We won!

When President Obama signs the health care reconciliation bill on Tuesday, we can crow about a robust public option -- en route perhaps to a more inclusive, cost-effective single-payer system. Soon, private profiteers (and subsidies to them) will be sidelined, and the government will save taxpayers billions by providing service directly to Americans in need.

I'm not hallucinating. We should savor this victory.

Unfortunately, it's not a health care victory.

Attached to the health care reconciliation bill is an unrelated college loan measure that goes in the opposite direction of health care reform. The loan measure sidelines private profiteers -- the banks -- and saves taxpayers money by making the government something of a "single-payer" which will soon be directly issuing most college loans in our country.

Direct lending by the government will cut out the middleman and save taxpayers, according to the Congressional Budget Office, $61 billion over 10 years -- with $40 billion in savings being redirected to higher education in the form of more Pell grants, more aid to minority-serving colleges and more aid to lower-income graduates for paying off their student debt.

What a concept!

Instead of moving to subsidize a bulky private industry and its waste, profits and exorbitant executive pay (as the new health bill does by mandating that millions become new customers of corporate insurers), the college loan reform reduces bureaucracy, profit and streamlines the system.

Yes, the right wing in Congress yelled "government takeover."

And, yes, corporate lobbyists put up a fierce fight to stop this common-sense approach that ends years of wasteful subsidies to private banks.

But Democrats in Congress stood up to them -- passing a measure in the public interest that can easily be explained and justified to the public.

It's a far cry from the backroom deal-making Obama and top Democrats engaged in with lobbyists as health care reform got watered down, as even a weak public option got jettisoned and as private insurers and big pharma deepened their control over the system.

I want to be happy at a time like this. I keep hearing everyone from liberals to mainstream media to right-wingers hailing this health care bill as a world-historical event. Sort of like the first man walking on the Moon.

To the skeptic in me, it's more like "one small step for humankind, one giant leap for private insurance firms."

But, today, it's great to be able to crow about some good news - college loans - where Congress put the needs of the public and students and families above the needs of private interests.


Jeff Cohen is director of the Park Center for Independent Media at Ithaca College and a former board member of Progressive Democrats of America.

 
 
 

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This user has chosen to opt out of the Badges program
03:48 AM on 04/11/2010
Another of the reforms you do not hear much about, especially if
you are a Fox Robot.

What do hateful creeps like John Boehner or Phony Palin tell you
about the Republican Party?

That facts and civil discussion do not matter. They see fellow
Americans as The Enemy, and want to divide us. Disagree with
them, even as a moderate Republican, and you are a target.

This is a road to destruction and making the US weaker. THEIR
Iraq war has done plenty of that in several ways.

Or will you stand up and help defeat these ideological fanatics?
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HUFFPOST SUPER USER
realitytrumpsbull
two 'alves of coconut!
04:24 AM on 04/01/2010
The day that you can learn something just by picking up a book and reading it, that's the day I'll get involved in continuing education. Oh, wait, that's today, and the um, 'tuition' is...$13.99. Might not get any college credit for it, but I also don't have to put up with a bunch of stuffy, self-important yuppie-wannabe's, or sit through some boring lecture. Education shouldn't have to hurt. And now, with books, you can do it yourself! It's what you're doing at college anyway, at 10 times the price, so, cut out the middlemen(ALL of them) and go read something and learn more about the world you live in! Maybe it'll help you, and, maybe it won't, depends on how good a student you are, and what you study. Best thing is, no student loan to repay! With Local Bookstore Pay-Go financing, if you can't afford that book, NO problem! Come back when you've got money! Luckily, the price of a book is much, MUCH lower than the tuition costs at just about any school, and you won't have people harping at you to take tests or write papers or do anything like that. Freestyle, baby!
HUFFPOST SUPER USER
middleoftheroad
01:35 PM on 03/30/2010
hmmmm take that $61 billion is savings out and the health care part of the bill is instantly $61 billion in the hole! This HC bill is a disaster. We'll see how this bill works with all the ways it seems to forgive college loans.
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10:41 AM on 03/30/2010
See, I would have said that we had a robust public option for student loans and we just moved closer to single payer, because it didn't make a lot of sense to keep giving a lot of for-profit middlemen a license to print money.
03:23 PM on 03/29/2010
Yes, the Indiana Democrats in the House and the Senate of Congress has increased the unemployment in Indiana because of this provision. I hope their fellow Hoosiers celebrate by kicking them out of office.

We can replace hard working Hoosiers with more DC bureaucrats. What a wonderful victory.
06:20 PM on 03/29/2010
lol....I'm located IN Indiana and while the potential loss of jobs is not a happy thought, I prefer a more efficient government program than the one we currently have.
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HUFFPOST SUPER USER
fb0252
01:14 PM on 03/29/2010
More free money. Wheeeeeee.......................
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hypnotoad72
Real democracy = living wages.
09:20 PM on 03/29/2010
Uh, a "loan" is not free. This isn't "subsidy to wealthy corporations". Look THAT up and find out how free your tax money goes to large companies that feel entitled to free handouts.
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PalaceOfWisdom
Obama signed away habeus corpus
12:11 PM on 03/29/2010
Student loan reform is the first clearly positive achievement of the Obama Administration, and even that only came by breaking his campaign pledge of transparency in government. Not only did Congress hide this in an unrelated bill, Obama didn't allow five days for public scrutiny before signing it. It's obvious they all panicked about November and made a desperate appeal to the young people who helped put Obama in the White House.

This proves what I've said for over a year: threatening to remove them en masse is the only way to get them to act in our interests. The pressure on them needs to remain intense or this will be the last meaningful thing they do this year.

The demand to Congress for the rest of 2010 has to be "Bank regulation with teeth this year or you're fired.". That includes breaking up any financial institution which is too big to fail.
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station agent
01:52 PM on 03/29/2010
Post of the day!!!! Fanned...
03:24 PM on 03/29/2010
They are already fired. Just waiting till November for the pink sheet. The HR process is long.
11:33 AM on 03/29/2010
< Attached to the health care reconciliation bill is an unrelated college loan measure that goes in the opposite direction of health care reform. >

you got that right - obama's "Health Care" "reform" bill IS A SOP to PROFITEERS.

< The loan measure SIDELINES private PROFITEERS - DA BANKS -- and SAVES TAXPAYERS MONEY BY MAKING the GOVERNMENT something of a "SINGLE-PAYER" which will soon be DIRECTLY ISSUING most college loans in our country. >

This is one of the first genuinely liberal, "democratic," and progressive bills we have seen come out of the Obama White House, and goes a long way to RESTORING some of America's ACCESS to HIGHER EDUCATION, before Right-Wing Republicans and Corporate "Democrats" handed that financial need over to the PROFITEERING banksters and financial operators.
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Paulite
10:51 AM on 03/29/2010
People wonder why higher education costs so much. It's because tuition has been subsidized for so long. Subsidizing the cost of higher education will increase the demand for it. Therefore the nominal price of the education will increase. This is poor policy which encourages ,more people to get deeper into debt. It also will punish people who actually save to go to school, or actually work through school in order to pay for it.
01:04 PM on 03/29/2010
Since you're clearly an expert on the economics of higher education, maybe you could give us a more in-depth analysis that shows how your argument is true.
01:22 PM on 03/29/2010
Here's a link to some research from Cornell on the subject

http://digitalcommons.ilr.cornell.edu/workingpapers/67/

The tuition argument is a common theme in economics regarding unintended economic consequences. I suggest reading Crashproof by Peter Schiff. It is brilliant.
HUFFPOST SUPER USER
WoolStreet
09:54 AM on 03/29/2010
Cost Savings With Single Payer

Admin Overhead ---(exponentially less paperwork...AMA hates this)

Malpractice Insurance---the largest component of Malpractice suits disappears...future medical...single payer is its own tort reform

Workers Comp---basically becomes an unemployment program

Auto Insurance---the medical liability folds into the system

BUSINESS expenses would decrease dramatically.

Pension Plans become an IRA account.

We could then use the insurance paper pushers in actual medical care where they are needed for the Booming Baby Diaper generation.
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station agent
01:55 PM on 03/29/2010
Single Payer would save US industry...great post...
08:36 AM on 03/29/2010
You're happy about this? When universities stop price gauging then I'll be happy. This measure turns the other cheek from the universities' abusive practices. More Pell Grants - great! Unfortunately, only the dirt poor qualify for those and the semi poor, middle class and semi-upper middle class will now take out huge debt and move themselves into the dirt poor category. Most students will still have a huge amount of debt to pay off. The only difference is that now they owe a different lender.
08:52 AM on 03/29/2010
Correct, and there is a reason for this. Tuitions have risen in parallel to the third-party system of paying them.

As scholarships, grants, and loans grew, the person receiving the service has not been the person paying for it. Universities found that there was little resistance to higher tuition levels, so they just continued to raise them. Money flooded in. But instead of passing the money on to teachers and professors, they invested in land, administrative staff, and buildings. Just ask any college professor if their salary comes close to that of anyone in the bloated admin staff.

This education bill will mean more tuition hikes.
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DaneAZ
Trapeze Artist
11:43 AM on 03/29/2010
I did all my "gen-Ed" at a community college saving a ton of money off of my degree.
I really didn't need to spend $2,800 on a literature class that the local Community College offered for $300.
Etc...
I already have encouraged a lot of other students to do the same...and they HAVE.

We all need to do this so that the general buying public REALLY knows there are often equivalent goods for sale at a much cheaper price.
02:00 PM on 03/29/2010
Wise decision. I'm in the middle of doing some prereqs before/if I start my Master's. I have to say the community college is much easier to deal with and I'm actually getting professors who are working in the field and teaching at night.
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AvgJoeBlow
We are smarter than any of us.
02:08 PM on 03/29/2010
Only one problem, in this country "What you know" is far less important than "Where you learned it". Vigourous testing of Graduates instead of Applicants is the only way to lower cost and raise standards accross the specturm.
ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
08:34 AM on 03/29/2010
Let's do the same for mortgages.

The interest on mortgages goes almost exclusively to the rich, increasing their share of US wealth. Their need for constant return on investment forces them to increase credit, including to people who will never pay it back.

Mortgages are profitable; why doesn't that profit pay our taxes?

And please, don't give me the "Fannie and Freddie are that". Those institutions messed up because they are private. They have shareholders that demand profit, even if it means bad loans, so they wrote them. They are no different than a commercial bank. They should go away, or the government should buy up all the stock and make them public.
08:55 AM on 03/29/2010
What are they going to buy up all the stock with?
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HUFFPOST SUPER USER
Mikeatle
Intelligent, Proudly Liberal Progressive!
09:54 AM on 03/29/2010
Buy up all the stock? Rubbish. Kill the companies and start afresh through the government.
ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
11:30 AM on 03/29/2010
With the same money ($700+B) that they bailed out the banks with.
Or that they loan to banks, now at zero interest, which banks loan to us at a profit.
So-called "printed" money.

The government can and does create money all the time.
Right now it gives it to banks and financial companies at low/zero interest.
Then they lend it as mortgages and take all the profit from the interest.

It's just cutting out the middle man, the banks who profit by lending our money.
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CroatianCritter
is keeping people honest
06:39 AM on 03/29/2010
I have absolutely no idea why this is in the health care bill but so goes current day politics. I am a college graduate from that wonderful 90s decade and I borrowed only 16K (College was MUCH CHEAPER) and refinanced it down to a 3% loan over ten years in 2001. And the reason for my sweetheart deal? I was dealing with the government. If a government is going to charge taxes, I would much rather use that money on GOVERNMENT programs than corporate welfare. Good job Obama! Too bad he doomed us with the health care bill!
07:12 AM on 03/29/2010
Actually I think it's only the beginning of health care reform. We now have lawyers looking for loopholes in the legislation. We must be vigilant and instantly close any loopholes. We must now take the profit/clout away from health insurance Companies and make them unprofitable. Single payer isn't far off if we stay focused.
08:31 AM on 03/29/2010
Sorry but the loopholes in this bill are weighted towards the health insurance industry. The best thing this bill provided was the was the government college loan provision. And it shouldn't have been it. It should have been a seperate bill.
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03:53 AM on 04/11/2010
Sounds like a Fox Robot. He does mention the 'wonderful 90's" and that
was good, for rich and poor, under Democratic Bill Clinton !

Not a single Republican voted for his economic reform package in 1994,
that helped create that dynamic climate. Just like now, they march, dare
I say it, like Stormtroopers, or sheep, to whatever bull... their leaders
demand.
02:20 AM on 03/29/2010
Typical. Conservatives only want to strike that one note of 'socialism' or 'government take over' no matter how inane the situation. In this situation, it IS the government's/taxpayers own loan money to begin with! There's noting stopping private institutions from giving student's loans also. Why do conservatives think that government hand outs/subsides to business is capitalism but giving taxpayer's back their own money --in ways they decide-- is socialism?
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02:30 AM on 03/29/2010
They dont care about politics. They care about gamesmanship.. But they dont really care about that either...

Nihilism..
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Kristen777
08:28 AM on 03/29/2010
This is that demographic that is too stupid to realize that their police, fire, road systems, unemployment compensationj, libraries, parks and Medicare are are socialized programs.
08:37 AM on 03/29/2010
Separate the noisy fringe from the rest and we have an actual debate about questions that are not all-or-nothing. The questions are of method and degree.

In what areas do we subsidize programs (and individuals) that require assistance? How can we best do this? And what part of the limited fund of government money and manpower should we commit?
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Militant Leftist
American seditionist
08:58 AM on 03/29/2010
Agreed, and let's not forget to mention that they conveniently overlook business subsidies, in other words, corporate socialism.
01:09 AM on 03/29/2010
"passing a measure in the public interest that can easily be explained and justified to the public."

Ok, fine. Explain and justify the regressives that just enshrined MORE inequality into federal law by singling out traditionally black colleges and hispanic colleges for millions upon millions of dollars.

At what point will so-called "progressives" finally stand up and act like they want a color blind society and equality under the law?
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02:10 AM on 03/29/2010
They need the support.
07:13 AM on 03/29/2010
Yes they do !
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Kristen777
09:02 AM on 03/29/2010
They are "singled out" because of the decades - eons - of disparity that has forced them into the poverty and lower classes.

I work for an HBCU in a community where - in the first decade of this century - several fifty year old citizens who were denied a public education during the height of the civil rights movement - were finally given compensation and a formal apology. The public schools in an entire county closed down rather than let minorities attend.

That's why.