Washington, D.C. - Today, two weeks after the Van Hollen amendment to the FY 06 Labor-HHS Appropriations bill passed by a vote of 224-178, closing the 9.5% loophole in the student loan program, the U.S. Department of Education and House Education and Workforce Committee Chairman John Boehner (R-OH) reversed course and joined Van Hollen in calling for an end to the 9.5% loan scam once and for all.
“I’m pleased that the Administration and Chairman Boehner have now finally joined us in calling for an end to this scam that is costing taxpayers and students billions of dollars,” said Van Hollen. “It’s high time we end this giveway and direct scarce resources where they’re needed most: helping students go to college.”
During the floor debate on June 24, 2005, Chairman Boehner urged Members to oppose the Van Hollen amendment and voted against the amendment himself. If allowed to continue unabated, the Congressional Budget Office (CBO) has indicated that the 9.5% special allowance payments would continue to cost taxpayers billions of dollars over the life of the applicable student loans.