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Lee Criticizes Federal Credit Programs

longwood.edu
Student aid is one of the largest federal credit programs.

Speaking at a session of the Joint Economic Committee in Washington, D.C., on Wednesday, Sen. Mike Lee called for an overhaul of federal credit programs. Lee said that the programs have become burdensome to American taxpayers.

“From TARP to farm programs, the federal credit system is hard to think of as a system at all, except for one feature,” Lee said. “If things go wrong, the federal government is on the hook; if things go wrong, the taxpayer ends up with the bill. It’s critically important that Congress debate the wisdom of such a system’s existence at all.”

One of the programs brought up in the committee’s discussion was federal student aid for higher education. In 2013, the level of student debt nationwide reached $1 trillion. According to reports, the class of 2015 is the most indebted graduating class ever. Lee said that it was time that the government debated the costs and benefits of such programs.

“Today, we look to start that debate by discussing something much simpler than this larger discussion,” he said. “Namely, we’re looking to find valid means to analyze cost, compare management structures, and establish a general rubric to make apples-to-apples comparisons. Getting on the same page on these questions will be a key step in the process of reforming these programs.”

In a statement release after the conclusion of the meeting, Lee criticized Congress for not having a comprehensive plan to manage the federal government’s credit portfolio.