Chairman Miller Statement on Budget and Student Loan Reform
WASHINGTON, D.C. – U.S. Rep. George Miller (D-CA), the chairman of the House Education and Labor Committee, issued the following statement after the House Budget Committee considered and passed the House Budget Resolution for Fiscal Year 2010. Among other things, the resolution includes instructions for the House Education and Labor Committee to enact reforms that produce $1 billion in savings for taxpayers over the next five years. Miller today announced the committee intends to use these instructions to enact student loans reforms that will benefit American families and taxpayers.
“Now more than ever, with millions of Americans losing income and jobs in this economy, students and families need reliable, low-cost federal student loans to help pay for college. The House Budget Committee did the right thing for students, families and taxpayers by passing a budget that will give us the opportunity to make our federal student loan programs more reliable and efficient, while saving billions of taxpayer dollars that could be used to further boost college aid and reduce our deficit.
“This is exactly the kind of investment we should be making, at this moment, to turn our country around. In the short term, it will help make sure the economic crisis doesn’t price qualified students out of a college education. In the long term, it will save taxpayers money and make our nation stronger and more competitive. I hope that the House will swiftly pass this budget, so that we can begin working with the Obama administration to make college more affordable and accessible for millions of Americans – at no cost to taxpayers.”
One student loan reform option that could be explored is President Obama’s proposal to use federal funds to originate all new federal college loans beginning in the 2010 school year. New estimates released last week by the Congressional Budget Office show this proposal will save taxpayers almost $100 billion over ten years – close to a $50 billion increase over previous estimates by the Office of Management and Budget. Specifically, the proposal will save taxpayers $47 billion over 5 years and $94 billion over ten years.
To view the CBO estimate, click here.
For more information on President Obama’s proposal, click here.
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