Press Releases

Rep. John Kline (R-MN), the top Republican on the U.S. House Education and Labor Committee, today strongly criticized legislation that would dramatically expand the federal government by eliminating the private sector-based federal student loan program and spending tens of billions of dollars on a range of new entitlement programs. The legislation, H.R. 3221, was approved by the House in a vote today largely along party lines.

“Democrats have had their sights set on a government takeover of student lending for more than a decade, and they’re capitalizing on the economic downturn to make it happen,” said Kline. “Today’s vote was about expanding the size and scope of the federal government through tens of billions of dollars in new entitlement spending and the elimination of choice, competition, and the innovation of the private sector. This job killing legislation is rife with hidden costs that will be passed on to future generations.”

Democrats rejected an amendment offered by Kline and Rep. Brett Guthrie (R-KY), the top Republican on the subcommittee that oversees higher education, to preserve private sector participation in the loan programs. The GOP alternative plan would have extended bipartisan student loan programs enacted last year to maintain stability in student financial aid while studying long-term solutions to maintain a viable private sector role in student lending that will benefit students, colleges, and taxpayers. The Republican plan would have reduced the federal deficit by more than $13 billion over the next five years.

For more information on why Republicans oppose a government takeover of the student loan programs, click here.

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