Obama-Care Meets Obama-Ed

Peter Wood:

Of President Obama’s three big takeovers–cap ‘n trade, health care, and higher ed–higher ed has garnered the least public attention. That may change now that the administration is attempting to impose its wishes by legislative trickery.
The health care bill that the Democrats hope to pass by “reconciliation” to avoid the normal Senatorial voting procedure is now being amended to include the administration’s Big Grab on federal student loans. If this works, we will have one bill in which the federal government not only takes primary control of American health care but also simultaneously takes practical control of American higher education.
Some background: last September, The Wall Street Journal (“The Quietest Trillion”) gave an early heads-up to the administration’s then-plan to move the Department of Education from a 20 percent to an 80 percent share of the student loan market. A bill passed the House that month that would have eliminated private lenders from the federally guaranteed student loan market by July 1, 2010. It came with a promise that taxpayers would save some $87 billion from substituting a government-run service for the rough-and-tumble of private lenders. In October, Secretary of Education Arne Duncan sent a letter to colleges and universities across the country advising them to get their institutions ready for a 2010 implementation of the new rules, dubbed “Direct Lending.” College officials, some House Democrats, and a few Republicans expressed their uneasiness at the new plan.