It was recently reported that Sallie Mae, the nation's largest student loan company, has already spent $2 million this year lobbying against President Obama's plan to eliminate bank subsidies and replace them with historic investments in direct aid. This plan is reflected in the Student Aid and Fiscal Responsibility Act which passed the House Education and Labor Committee last week. The non-partisan Congressional Budget Office estimates ending the subsidies will save $87 billion in 10 years, much of which will go towards the Pell grant and Perkins loan.
"The banks and lenders who have reaped a windfall from these subsidies have mobilized an army of lobbyists," Obama said in a weekly radio address earlier this year. "I know they're gearing up for a fight as we speak. My message to them is this: So am I."
The President's confidence is encouraging, considering Sallie Mae spent $3.4 million on lobbying last year, including $10 thousand on the "Blue Dog" Democrats who have been relatively vocal in their opposition to the plan.
Sallie Mae and other baking interests rely heavily on high interest student loans- don't let them buy Congress out! Take action now by calling your congressman and urging support for the Student Aid and Fiscal Responsibility Act.