Thomas E. Petri: “I believe that this bill, while not perfect, is something that any Republican who stands for these principles should…”

“I believe that this bill, while not perfect, is something that any Republican who stands for these principles should support. For many years, I have spoken out against the excess subsidies that taxpayers pay to lenders in the guaranteed loan program. Government and private economists, including those in the Office of Management and Budget, the Congressional Budget Office, the Government Accountability Office and the Treasury Department, have all confirmed the significant inefficiencies in the program due to the arbitrary and capricious nature in which lender subsidies have been set over the last 40 years. In fact, these scorekeepers have found that taxpayers spend $3 to $5 billion each year on unnecessary subsidies that could be better applied as direct aid to students. The status quo on lender subsidies is inefficient, wasteful and unacceptable, and I applaud the effort made in this bill to redirect these resources primarily as Pell Grants and interest rate reductions.”