Flowers moved to abort its bid to buy Sallie Mae due to the imminent passage of a House bill curtailing federal student loan subsidies.
It would cut farm subsidies, Medicare, student aid, housing subsidies for the poor, and funding for community development grants.
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By the federal government guaranteeing every student loan through subsidies and underwriting, there is no downward competitive pressure on reducing tuition prices as the number of entering students will increase.
Remember how many years we tried to stop big banks from collecting taxpayer subsidies for student loans while the cost of college kept slipping out of reach?
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Critics of proposals to cut subsidies to the student loan industry say that they could hurt low-income and black students the most.
Institutional subsidies and cheap student loans for all are the major culprits.
This month, Dillard University's president, Marvalene Hughes, wrote her Louisiana senator to plead with Congress not to cut subsidies to private student lenders.
We reconfigured the student loan program to eliminate wasteful subsidies to banks and put students' needs first, increasing financial aid for millions of young people.
The Budget Control Act of 2011 will cut off government subsidies of lower interest graduate student loans starting July 2012.
Last year Congress also reduced federal subsidies for federally-guaranteed student loans, and some lenders said that made the business uneconomical for them.
"Right now, the subsidies in the government-guaranteed student loan program are set by the Congress through the political process, " the budget document read.
And to achieve my goal of ensuring America once more has the highest proportion of college graduates in the world by 2020, we passed a law that will make college more affordable by ending the unnecessary taxpayer subsidies that go to financial institutions for student loans.
Because of you, we have ended taxpayer subsidies that were going to banks under the student loan program.
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Democrats have always been critical of federal interest-rate subsidies to private lenders, which is how student loans are organised.
In order to create the funds necessary for student loan forgiveness, 54% of respondents said the government should erase subsidies to oil and gas companies, the cliche whipping boys of students everywhere.
Not only is the legislation pending, but we know how it can be paid for, which is to stop providing subsidies to banks and financial institutions that are serving as middlemen on student loans. (Applause.) Let's have those loans go directly to the students.
As part of a higher education package that we passed last year, what we were able to do was to take away subsidies that were going to banks for serving as middlemen in the student loan program and funnel that to help young people, through Pell Grants and lower rates on student loans.
The administration is also pressing hard to end subsidies for private health insurers that offer Medicare plans, and to cut banks out of the student-loan industry.
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