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Written by: Cody Brumfield
Published: 12/12/2005 Chairman of Key House Committee Assures Lenders of his Support in Speech
According to the Chronicle of Higher Education, Rep. John Boehner (R-OH), chairman of the House Education and Workforce Committee, assured members of the Consumer Bankers Association of his support when speaking at the association's annual meeting in Arlington, VA.
The CBA, which represents financial institutions including student lenders, recently sent a letter to lawmakers urging their strenuous opposition to proposed cuts in subsidies banks receive when making federal student loans.
In his speech, Rep. Boehner implored them to “Relax.” and “Stay calm.”
“At the end of the day, I believe you'll be at least satisfied, or perhaps even happy... Know that I have all of you in my two trusted hands.”
While Rep. Boehner offered no details on specific policy changes, he told his audience that “I've got enough rabbits up my sleeve” to produce a bill more favorable to lenders, who contributed over $172,000 to his campaigns and political action committees during 2003 and 2004.
The proposed cuts are the result of the ongoing budget reconciliation process, which will reduce spending on federal entitlement programs such as Medicare, Medicaid, and student financial assistance to fund additional tax cuts and provide relief to victims of the recent hurricanes. No final bill is expected this year as House and Senate versions vary significantly. However, one unifying factor between the two versions is the overwhelming share of total cuts applied to higher education.
The House version, H.R. 4241, would cut $50 billion in total spending over the next five years with $14.3 billion coming from student aid programs. The Senate bill, S 1932, features total cuts of $36 billion with about $20 billion slashed from student aid. The Senate version also includes two new grant programs for low-income students and a phase out of loan origination fees which will result in final higher education cuts of around $10 billion.
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