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Statement by House Education and the Workforce Committee Chairman John Boehner (R-OH) on Proposed Expansion of President Clinton's Direct Loan Program

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Statement by House Education and the Workforce Committee Chairman John Boehner (R-OH) on Proposed Expansion of President Clinton's Direct Loan Program
March 15, 2005

WASHINGTON, D.C. - Rep. John Boehner (R-OH), chairman of the U.S. House Committee on Education and the Workforce, today issued the following statement regarding a proposal backed by the congressional Democratic leadership that would force American taxpayers to pay for an expansion of President Bill Clinton's Direct Loan program.

"I strongly oppose asking American taxpayers to pay more money to expand Direct Lending, a federal program that most schools don't like, which has never achieved the savings it was supposed to achieve. According to official government data, almost 80 percent of American schools have voluntarily chosen private sector lending over federally-controlled Direct Loans, and more than 500 schools have voluntarily dropped out of the Direct Loan program since it was created under President Clinton. Using taxpayer funds to now pressure American schools to participate in the Direct Loan program strikes me as a very bad idea.

"The Direct Loan expansion proposal being promoted by the Democratic leadership is a cruel hoax that makes empty promises to both students and taxpayers. It promises expanded benefits for students, but pays for them from a pot of money that may not even exist. It promises savings for taxpayers, but forces them to pay to expand a program that appears to already be costing billions more annually than official budget estimates show. The introduction of this misleading and divisive proposal is an unfortunate development in the Higher Education Act reauthorization process."

http://edworkforce.house.gov/press/press109/first/03mar/statement031505.htm

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