ThinkProgress Logo

Election

Education

Mitt Romney Comes Out In Favor Of Giving Student Loan Money Back To Wall Street Banks

Ballooning student loan debt has become a critical issue for American families who have struggled through the recession to balance those loans with other payments and obligations as they try to make ends meet. Loan debt has increased exponentially in the last 20 years, and in 2011, total student loan debt exceeded $1 trillion for the first time. Despite public protests, Republicans have largely ignored the issue and opposed plans to fix the problem.

One of the attempts to address rising student loan costs was buried in the Affordable Care Act, the health reform law signed by President Obama two years ago. That provision cut large banks out of the federal government’s student loan program, and since it passed, Republicans have taken to calling it a “government takeover” of the student loan industry. Asked what he would do about student loans at a town hall in Ohio today, GOP presidential candidate Mitt Romney took the same approach, decrying the “government takeover” while saying he wished he could find “free money” to help people with their student loans:

ROMNEY: I wish I could tell you that there’s a place to find really cheap money or free money and pay for everyone’s education, but that’s just not going to happen. … I’d like to see more competition in the lenders. Now the government is taking over the student loan business, I think you’ll get less competition. I’d rather have more competition with private lenders as well as governmental lenders.

The “government takeover” of student loans, as Romney surely knows, isn’t really a government takeover at all. The private loan industry still exists; loan reform only takes banks out of the federal loan process. And that reform did, in fact, provide “free money” to students by taking billions from big banks that were acting as middlemen managing the federal loan program and giving it back to students. The reform plan both saved taxpayers money and pumped an extra $100 billion into the economy thanks to the increased earnings of students who could take full advantage of the Pell Grant program.

“I know there will be some who get up in a setting like this and give you a bunch of government money, free stuff,” Romney said. “That’s not who I am.” Instead, Romney appears ready to make student loans more expensive by taking money away from students and giving it back to Wall Street.

Economy

Romney Endorser Thad McCotter: ‘There Was No Choice’ But To Rescue The Auto Industry

Former Massachusetts Gov. Mitt Romney (R) narrowly won the Michigan primary last night despite his rampant opposition to the auto industry rescue that saved the state’s largest industry, likely because his main competition for the primary victory also wanted to let Detroit go bankrupt. But in the two weeks before the primary, Romney’s position was criticized by Michigan Republicans, auto industry insiders, and reporters who covered the rescue, many of whom said Romney’s plan would have killed the American automotive industry.

Rep. Thaddeus McCotter (R-MI), a former candidate for president who endorsed Romney after leaving the race, piled onto that criticism last night during MSNBC’s election coverage, telling the network’s panel that not rescuing the auto industry would have hastened the “deindustrialization of America.” McCotter also criticized Republicans who, like Romney, supported the Wall Street bailout while opposing the auto rescue:

MCCOTTER: But it’s not simply the auto industry. It’s about blue collar jobs, white collar jobs, non-unionized jobs, unionized jobs, and the deindustrialization of America that would have even hastened had those companies been allowed to seize up, go into bankruptcy and put hard-working men and women…high and dry. [...]

Now when you also look at what happened with the bridge loan, as we talked about at the time, President Bush authorized that money to come out of the already-appropriated funds that were targeted to the Wall Street people that caused the problems in the first place. So to my fellow Republicans I’ll simply remind them, if you were in Congress at the point in time or if you were President Bush, you could leave all $700 billion of taxpayers hard-earned money with the Wall Street people, or you could take some back to Main Street to keep America a balanced, vibrant economy. To me there was no choice.

Watch it:

Romney’s position on Wall Street bailout has varied, but most recently, he offered support for it in a way that resembled the support many of his fellow Republicans had for the auto rescue. “The TARP program, while not transparent and not having been used as wisely it should have been, was nevertheless necessary to keep banks from collapsing in a cascade of failures,” Romney told Reuters. “You cannot have a free economy and free market if there is not a financial system.”

Unfortunately, Romney never felt the same way about the failure of the auto industry, which, according to one estimate, would have lost 1.3 million jobs without the rescue.

Economy

‘Ohio Manufacturers For Romney’ Received Nearly $1.6 Million In Stimulus Funds

In an effort to head off former Sen. Rick Santorum’s push on manufacturing in the key Super Tuesday state of Ohio, Mitt Romney this morning announced an “Ohio Manufacturers for Romney” coalition. A search of Recovery.gov shows that the corporations of two members of the group received nearly $1.6 million in Recovery Act funds.

Lincoln Electric of Cleveland received a sub-award of $1,125,00 on April 7, 2010 from the Ohio Department of Communications Development for an energy-related project in Euclid, Ohio. RPM International of Medina received two sub-awards in 2010, totaling $458,758 for two U.S. Army projects.

Romney, meanwhile, recently used the occasion of the Recovery Act’s third anniversary to continue attacking the law:

 

The Congressional Budget Office reported last week that up to 2 million people were employed in December because of the stimulus.  Manufacturing jobs have also grown for the past two years in a row after previously seeing no annual growth at all since 1997.

Switch to Mobile
ThinkProgress Signup Overlay Skip and Continue to ThinkProgress Skip and Continue to ThinkProgress

Sign Up