Tax and Spend 101

Today, as expected, President Bush signed the College Cost Reduction and Access Act, which cuts subsidies to lenders in major federal student loan programs (good) but then directs almost all the savings to Pell Grant increases, interest rate cuts, and loan forgiveness for lendees in public service jobs (all bad). One major reason Bush likely signed the bill is offered in USA Today:

The action allows both the Bush administration and Congress to say they have done something to ease the burden of paying for college, a popular political priority.

Yup. While Bush has for a long time called for Pell Grant increases to help truly low‐​income students, he said he didn’t like much of the rest of the bill, which simply throws more money at often well‐​to‐​do students and graduates. It’s likely he ultimately signed the bill, then, because it’s politically popular.


Of course it is: The middle‐​class‐​and‐​above students and families who will largely reap the benefits of this redirection of taxpayer money from lenders to students are a big voting bloc. But not only is that a bad reason to support this legislation – get ready for the tuition increases that will inevitably swallow any new buying power – but signing this bill into law seems to be little more than a continuation of the big‐​government, big‐​spending profligacy that’s helped put the GOP in a minority position that seems likely to get even smaller come November 2008.