Obama’s Student Loan Troubles

Earlier this week I wrote that Democrats may attempt to get changes to the student loan industry in place by making their student loan reform part of the health care legislation.

Well never mind.

The New York Times’ David Herszenhorn reports that:

Democrats in the Senate… predicted on Wednesday night that the education bill would not be part of an expedited budget measure containing the final revisions to the health care legislation. Some Democrats said that such a move would stall the student loan changes at a minimum for several months, and perhaps kill the overhaul altogether.

Apparently support for universal health care doesn’t automatically equal a desire to reign in the student loan industry. The reason?

Well apparently it’s because:

The education bill is strongly opposed by some Senate Democrats, particularly those in states where for-profit student lenders are major employers. In a letter to the majority leader, Senator Harry Reid of Nevada, six Democrats said they disliked the president’s proposal.

So who are the student loan industry’s dirty half-dozen? Herszenhorn reports that they are: Thomas Carper (Delaware), Blanche Lincoln (Arkansas), Ben Nelson (Nebraska), Bill Nelson (Florida), Mark Warner (Virginia) and Jim Webb (Virginia).

Daniel Luzer

Daniel Luzer is the news editor at Governing Magazine and former web editor of the Washington Monthly. Find him on Twitter: @Daniel_Luzer