President Beats Up Banks Over Student Loans
The President is backing a bill that passed the U.S. House of Representatives. If passed, the bill would reduce banks’ and Sallie Mae’s part of the $92 billion university student loan business. Instead, the U.S. Education Department would run a new program.
“Ending this unwarranted subsidy for the big banks is a no-brainer for folks everywhere. Everywhere except Washington, that is,” Obama said. “In fact, we’re already seeing the special interests rallying to save this giveaway.
“The large banks — many who have benefited from taxpayer bailouts during the financial crisis — are lobbying to keep this easy money flowing. This is exactly the kind of special interest effort that has succeeded before and that we cannot allow to succeed again,” he said.