Blogs:

There is an urgent need by Washington to find Federal budget cuts what with the congress striving to keep tax breaks from the Bush era and proposals being unfurled by the debt commissions. It is the urgent need of the hour to initiate efforts to spend as wisely as possible in view of scarcity of dollars. This is the only way to cut down on costs even as we provide high quality education.

Fraud, waste and abuse are the three areas constantly being attacked by politicians. There are two higher education programs that are proposed to be acted upon by the Obama administration, programs where it is evident that Federal dollars are spent indiscriminately. At the expense of tax payers and students, student loan companies, two industries and for-profit colleges have made a fortune.

Even as their risk factor was negligible, large loan companies earned a handsome sum just disbursing Federal student loans. Taxpayers paid the bills that were defaulted by students. The exact scenario is that the money thus earned by the large loan companies were spent on helping to keep Congress on their sides by providing contributions to campaigns.

In spite of this, our President and Arne Duncan, our Education Secretary took upon them to push for legislation for student loan reformation and to free up essential dollars that can go towards paying for college. In spite of fierce lobbying campaign, the administration stood firm in its stand and prevailed last spring in Congress.

The haggle over loan reform was muted down by the battle over for-profit colleges. Enforcing current congress mandate, Duncan has proposed certain regulations that stipulate that financial aid will be provided for certain short term programs only if they strive to prepare their students for “gainful employment”. As compared to the lender dispute, there is ten times more intense struggle and pressure by the industry to kill this rule according to administration officials.
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Millions have been spent by the for-profit colleges to hire lawyers, lobbyists and consultants including former Congress members and former officials from Obama and Clinton administration. Many television ads are now emerging on how college “choice” is threatened by the administration. These colleges have also enhanced their contributions to both parties.

Despite claims from opponents, the government’s efforts to expand regulations are not represented by the new rule. By providing financial aid to students, government is already involved with these colleges. The issue here is whether through the government policy, students should be directed towards programs that fail them or those that help them succeed and prepare them for work.

It is definitely right on part of the Obama administration to stand up for and bring into place a system that will serve students and taxpayers better. Hope moneyed interest pressure does not overrule constructive efforts in enhancing economic opportunities for the deserving and to enhance quality of education.

It is the need of the hour to support the administration’s efforts in this direction and ensure that Federal dollars are spent in the right manner that will benefit students as well as taxpayers.