How is that a politician can go around saying that he wants education reform and that he wants "No Child Left Behind" turn around and try to change the long-term interest rate structure on student loans, and have the media still act like he's great for the country?
The new plan changes the interest rates on consolidation loans, which allow students to take all of the loans they've accumulated during college and replace them with one new, larger loan at a fixed interest rate. The President wants to change that to make the interest rate variable. Even with set limits, this could cost students vastly more than the same loans do today (30% is the current estimate). The reason for this new idea is to "make up" a shortfall in funding for Pell Grants. Of course, the Pell Grant problem is due to a gigantic, poorly targeted tax-cut and massive over-spending in other areas, but let's not quibble. The President thinks it's a better idea to massively increase the debt burden for most students, in order to look good by saving grants for a few of them. Never mind that most students receiving Pell Grants also receive student loans. According to one source:
"On Pell grants, the problem is not congressionally caused shortfalls, it is cutbacks supported by President Bush. In his budget that abandoned any pretense of an education presidency, Bush's student aid plans would reach nearly 400,000 fewer low-income kids and cut the maximum individual grant to $3,900, which doesn't even keep up with increases in tuition and other costs. A generation ago, pre-Reagan, Pell grants covered more than three-quarters of the cost of a four-year public university; today the maximum doesn't even cover 40 percent." - Oliphant.
It also lets him attempt to blame Congress for the issue. Of course, the Republicans control the House, and the House controls spending.
The long-term effect will be simple. Combined with double-digit tuition increases, it will push the children of those middle class families that can't afford to put $100,000 in the bank tfor a public school education to either accept staggering debt loads or forgo college. It would be even worse for the children of the poor. The Bush Administration is pushing policies that will make vast amounts of money for their friends running financial institutions, and create a new underclass that is poorly educated, and with the flight of high-wage manufacturing jobs to cheaper locations (fueled by free trade and IRS loopholes), unable to get a decent job.
I'm not sure how this is supposed to "promote the common welfare", and I'm not sure how this plan is supposed to enhance access to education. I'm sure it must, oherwise the man who keeps saying that he wants education reform wouldn't be doing it. Right?