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On Campus Blog
Alex Friedrich

Sen. Kline's issues with the federal direct-lending program

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Here's a follow-up of Rep. John Kline's (R-MN) hearing on the federal takeover of the student loan program.

Kline had warned of complaints of poor customer service and security issues, among other things. In the session above, it sounds like things are actually running relatively smoothly -- something about which he said he is "very glad."

But Kline still still appears to have issues about the law that prompted the takeover, as well as a recent security breach and a "slush fund" that the program is amassing because of the difference between the rate at which the government borrows and the rate at which it lends.

Regarding President Obama's student-loan reform last week, he said in a separate press release:

“Sadly, the president has once again chosen to put politics before policy, touting a plan that will do nothing to help the nation’s unemployed workers.

“Despite the administration’s rhetoric, this plan will not create a single job, strengthen our economy, or promote fiscal responsibility. What this plan will do instead is encourage more borrowing across the board. That means more debt for students, more debt for taxpayers, and more red ink on the government’s books.

“If the president is serious about putting people back to work, he needs to get off the campaign trail and work with Congress to enact the 15 bipartisan House-passed jobs bills.”