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W I T H J E F F W E N D T
Neal McCluskey
ASSOCIATE DIRECTOR • CATO INSTITUTE’S CENTER FOR EDUCATIONAL FREEDOM
A savvy Washington-watcher discusses the present condition of student loan federalization.
“For decades, student
Discuss the Student Aid and Fiscal Responsibility Act.
nulltnulls a binullnull that has been nullassed by one nullouse nullonullnullitteenull nullet therenulls no nullay to
lending has been largely
cnullearnully tenullnull nullhen and by nullhonull it nullight beconulle nullanullnull

a government enterprise,
What does our audience need to know about it right now?
nullf it beconulles nullanull in its nullresent fornull it nullinullnull cause anullnull federanull nulloans to be originated
as federanull gonullernnullent nullending by nenullt sunullnullernull nullonullenullernull it nullinullnull anullso nullroduce a
though ostensibly private
cascade of federanull snullending nullithin and outside higher educationnull nullt anullso incnulludes
nullnullnullnullnull fornull sinullnullnullinull cationnull
companies have been
Briefl y describe the cascade of spending.
intimately involved.”
nullnuller ten yearsnull null4null binullnullion for nullenullnull grantsnull nullnullnullnull binullnullion for conullnullunity conullnullegesnull
nullerkins nullinullnull nullronullide nullnull binullnullion nuller year and incnullude a nullnullonullnulltuition incentinullenull to
encourage schoonulls to tanullnull donulln tuition increasesnull null1null binullnullion onuller 1null years
for earnully chinulldhood and nullrenullnull educationnull null4 binullnullion for nullnull1null buinulldingsnull Th erenulls
nullorenull Th e theory is that anullnull of the nenull snullending nullinullnull be conullered by sanullings
resunullting fronull the snullitch to direct nullending null
Is everyone in agreement that there will be $87 billion in savings?
Th e initianull nullnullnull estinullatenulland nullongressnullan Minullnullernulls nullronullisenullnullas nullnullnull binullnullion
in sanullingsnull nullnull er tnullo nenull nullnullnull estinullatesnull sanullings nullere renullised donullnnullard by
around null4null binullnullion fronull the nullnullnull binullnullion null gurenull nullongress then turned its attention
anullay fronull student nulloans tonullard recessnull
Is there any way to predict an outcome?
Th erenulls a nullinulld card knonulln as nullbudget reconcinulliationnullnull Th at nullrocess counulld cause
a nullanull nullike this to be nullassed in a hurrynullnullerhanulls on a nullarty nulline nullotenull benullonull the
radar of nullany senators and congressnullennull nullf congressnulleonullnulle are focused on heanullth
carenull itnulls enullen nullore nullossibnullenull
Sum up the politics.
nullor decadesnull student nullending has been nullargenully a gonullernnullent enternullrisenull though ostensibnully
nullrinullate conullnullanies hanulle been intinullatenully innullonullnullednull Th e nullresent nullongressionanull brinullnulliance
has been to nullronullise so nulluch nulloney to canullnulluses that conullnulleges and uninullersities hanulle
onull ered nullery nullinullited obnullection to thronulling those nullenders anullnullost totanullnully out of the nullinull
and ushering in nearnullconullnullnullete federanullinullationnull
T
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