Education has kind of taken a back seat to some of the other facets of the Obama agenda, but on one measure they have sought to make tangible progress – the utterly common-sense notion of ending the subsidization of the private student lending market, and using the savings of providing student loans directly to increase Pell Grants and other awards to make college more affordable. This would redirect $87 billion dollars over 10 years from the pockets of bankers to students. It’s about as simple and clear a position as you can take.
So naturally, it faces resistance from Republicans and ConservaDems who have private student loan operations in their states. Back in April, the Senate, preparing for this resistance, authored budget reconciliation rules to move this education measure forward with 50 votes instead of having to break a filibuster with 60. And now, Tom Harkin is planning on doing just that.
Sen. Tom Harkin (D-Iowa) is risking an intra-party battle by fast-tracking legislation that seeks to cut off federal subsidies to student loan companies.
Harkin said he will attempt to use special budget rules that only require a simple majority vote to advance a bill that would end the Federal Family Education Loan program, which would free up money for other education programs.
But centrist Democrats are blanching at Harkin’s move to use the reconciliation process for an education bill that includes major policy reforms, echoing concerns they raised over using those rules for healthcare legislation.
As reconciliation is supposed to be used purely for budget items, and this specifically saves money in one area of the budget and shifts it to other programs, there should be no parliamentary problems with using reconciliation to enact this reform.
What’s interesting here is that budget reconciliation has been consistently offered up as a solution to break the health care stalemate. Republicans and media outlets not bothered by falsehoods have called this an unprecedented (it’s not) and radical (again, no) step. But here, Democrats are perfectly content with using reconciliation to resolve the phase-out of subsidies to private student lenders.
Majority Leader Harry Reid’s (D-Nev.) office noted that reconciliation has been used for education bills before, including in 1997 when Congress approved tax incentives for people to pursue higher education.
“[The] budget resolution we passed earlier this year explicitly included reconciliation instructions for education to give us the option of using this vehicle for this purpose and that option remains on the table,” said Joel Payne, a Reid spokesman.
Because you can only use one reconciliation bill per year, the education measure won’t come up for a vote until later in the year, to guard against the possibility of needing reconciliation for health care. Many of the same Senators wavering on the health care bill, particularly Ben Nelson (D-NE), are opposed to this education measure, and if the Senate uses reconciliation they would be outvoted on both counts.
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AND THE KILLIN’ GOEZ ON AND ON AND…
Citizen David Dayen and the Firepup Freedom Fighters:
Please give us a fast and dirty work-up about how reconciliation would work given where the healthcare bill is right now and how we could mobilize forces and where we could apply them to pressure the administration to use this mechanism.
As I hae been sayin’ for months now, Obama needs a strong healthcare bill and he will only survive politically if he gets one so why aren’t we seein’ the threat of reconciliation comin’ from the White House war room?
KEEP THE FAITH AND PASS THE AMMUNITION, THE STRUGGLE GOEZ ON AND ON AND…
doG forbid that the banksters not be able to chain college grads to a lifetime of indebtedness. How DARE the Obama admin interfere with their rights to set the screws as soon as possible.
Under the sage leadership of Harry Reid, reconciliation is supposed to be used only when Republics have a majority.
Or they could totally just, you know, pass the damn thing! I’m so tired of Obama waffling on healthcare…
But $87 billion to education sounds like a good thing, so I’m not gonna bitch too much…
Have you seen the ad progressives are running in NV?
I have now.
Apparently, she never knew Reid was a boxer.
However, I think he never got beyond shadows.
Thank you, eCAHN, for the link.
An excellent, thoughtful, real-world, articulate, and honest advertisement, quietly and most powerfully delivered.
DW
Citizen eCAHomics:
Next step is to get a Joe Sestek to primary One Hung Harry’s sorry ass.
Interesting article from The Hill:
(emphsis added)
Link
Any possibilities waiting in the wings?
there’s lots out there about the mechanics of the process itself – but here, Kagro X holds forth on current conditions
p.s. I really like the karma of Kent Conrad being forced to to be the one to meld the 2 existing bills, but is “prohibited from making substantive changes to the bill at that stage”
2 of 3 of NV members of the U.S. House are Ds.
Added on edit: Both D districts are Las Vegas & around LV. The other district is the whole rest of the state, which has a R rep.
The education dept under bush really pushed people like me to shift our student loans to the private sector. One of the smarter things I did was to refuse them when they dangled a low initial rate at me. (I was also smart enough when taking the loans not to touch any of the unsubsidized portions, which would have had interest accruing while I was still in school.)
Higher education is part of the mafia of the intelligentsia. Tuition rates have no rational reason to be so high. And if tuitions weren’t so high, the borrowing racket would be much diminished.
Notice Senator Pennypincher Conrad is among those “on the fence” as to whether this $87 billion blatant taxpayer rip-off should be eliminated.
Had it a few hours ago: FDL News Desk link.
All I can say is that I was lucky to have finished just as the problem was getting worse, and that I was in grad school when the big problems were starting and so had much of it paid for through salary as a teaching assistant and fellowship grants.
But I did learn a few lessons that are worth communicating to current students: DON’T TOUCH THE UNSUBSIDIZED PORTIONS THEY OFFER YOU, for one.
Otherwise, this issue is definitely up there with others that require a lot of pushing against the “deciders” currently running the govt.
Dammit, CNN is again reporting the nonsense that leaders are worried that there isn’t enough support to get 60 votes for a public option.
F&*cking pathetic.
Now they’re showing the latest PCCC ad to pressure Reid.
CNN anchor: “You’ve got to get to 60. Some how or another, you gotta get to 60.”
CNN needs an enema.
Thanks. Am not facile with your new addition to the site, which has now exceeded my capacity for complexity. There doesn’t seem to be a button for it up top.
When you are on a comment thread that originates from the “FDL News Desk” (such as this one is) the “Home” button takes you to the News Desk front page. If you are on a thread from the FDL Mothership or partners, then News Desk is a link off the banner, just as Seminal, emptywheel. tbogg, etc.
I like the strategy. Obama can now point to the precedent of having passed another important bill through the conference committee method. This leaves an opening to do the same with the health care bill. People have been underestimating this man since the campaign began.
here is how regressive that so-called high-end tax is.
I am on COBRA. I pay $324 a month to stay on the group plan.
When it ends after COBRA, I can get guarantee issue of the plan for $750 a month…or 9k a year. That would qualify as a Cadillac plan. Except it aint. It is only a CADILLAC COST plan because I have pre-existing conditions, that is to say I use it and have several prescriptions typical of a 55+ male.
Nice work with this tax scheme.
OB had a better idea. Lower the top bracket charity deduction to match the middle-class deduction–28%.
It raises hundreds of billions and is far more fair.
CNN needs its “mouth” washed out with soap.
I don’t doubt Obama’s capacity to get bills passed; only his capacity to get good bills passed. He seems to be a master at negotiating with himself.
Well it’s about damned time. What I don’t understand is why ANYONE would rather give taxpayer dollars to banks instead of help out already struggling students buried under a pile of debt (not counting the interest). I don’t understand why this didn’t get 100 votes in the Senate, because this is an issue of common decency and putting people first. The Senators have NOTHING to gain by voting *against* giving college kids a break! I just don’t get it.