Republican education leaders in the House and Senate, including Sen. Lamar Alexander, will hold a news conference at 3 p.m. in Washington, D.C., to voice concerns about a proposal to eliminate the Federal Family Education Loan Program and with the Direct Loan program.
The change, being pushed by the Obama Administration, would effectively cut out federally backed private student loans. The money saved would be funneled into increasing Pell Grants, officials said.
The student loan legislation is in the pending health care reconciliation package.
Republicans argue such a move is an abuse of the legislative process that will eliminate borrower choice and competition, destroy tens of thousands of jobs and add to the country’s long-term debt.