Dan Coats: “I rise to voice my serious concerns that this omnibus appropriations bill fails to include an important provision: a…”

“I rise to voice my serious concerns that this omnibus appropriations bill fails to include an important provision: a limitation on the expansion of the Federal Direct Loan Program to 40 percent of loan volume for the academic year that begins on July 1, 1996. As my colleagues know, back in the fall when we passed the Balanced Budget and Reconciliation Act, Congress agreed to return this questionable, big-government program to a true demonstration size--10 percent of total student loan volume. Many of us viewed the 10 percent cap as a reasonable compromise, especially in light of the House vote to repeal the program altogether. And, many of us would still prefer to repeal this misguided takeover of the student loan program. Nonetheless, I and many of my colleagues on both sides of the aisle, were willing to support a middle ground on this issue: a limit on the expansion of direct lending to 40 percent of loan volume. I believe that this was a more-than-reasonable compromise because it would permit all currently participating schools to remain in the program. Let me say that again: not one school that is already participating in direct loans would be forced out. However, the administration would not accept this reasonable compromise. The President allegedly threatened to veto the entire omnibus appropriations bill if a cap on direct lending was included. This is incredible!”