Tom Harkin: “I can't help but be somewhat amused by all this talk about the private sector--the private sector involved in these…”

“I can't help but be somewhat amused by all this talk about the private sector--the private sector involved in these students loans. We want this private sector to keep going --this private sector. Let me point out, Mr. President, that the "private sector" involved in this Guaranteed Loan Program gets a subsidy from the taxpayers of this country to the tune of $7.5 billion a year. That is right--this private sector enterprise gets a subsidy from the Federal Government every year of $7.5 billion. Private sector? Hardly. Subsidized sector? Yes. So all of this talk about this private sector out there in the Guaranteed Loan Program is nonsense. Now, if you want to make it private sector, let's not give them any subsidies. Let's knock out the $600 million to lenders for the special allowance payment.”