House education panel passes reform bill

The House Education and Labor Committee on Tuesday passed an education reform bill, 30-17, attracting the backing of two panel Republicans.

The Student Aid and Fiscal Responsibility Act of 2009 would bring all federal student loans under direct government control by 2010. Private lenders would no longer issue subsidized loans under the Federal Education Loan Program (FFELP), which would be phased out.

Committee Chairman George Miller (D-Calif.) called the legislation “a historic investment in higher education” that “expands high-quality educational opportunities to all Americans.”

Every committee Democrat voted for the bill. Reps. Thomas Petri (Wis.) and Todd Platts (Pa.) were the only GOP members to approve the bill.

Republican Ranking Member Rep. John Kline (Minn.) criticized the bill for encroaching upon the private sector, asking, “Is there any industry not on the verge of federalization?”

Rep. Brett Guthrie (R-Ky.) added, “I, for one, am not comfortable with the idea of the federal government acting as a profit-making bank.”

H.R. 3221 will save $87 billion over 10 years, according to Congressional Budget Office projections. The legislation directs $10 billion to pay down the federal deficit, with the rest reinvested in initiatives supporting higher education. The highest proportion of funding will go to Pell Grants, which would receive $40 billion.

Alluding to President Obama’s push for support of higher education, particularly community colleges, Miller called the bill “proof of his vision.” Obama backs the phase out of FFELP, but some Senate Democrats — as well as some Democrats in the lower chamber — have spoken out against those provisions.

–Eric Messinger