Putting the needs of private lenders above those of students:
AN ACT To provide that constituent Institutions of the North Carolina community College System may Opt Out of participation in the William D. Ford Federal Direct Loan Program.
Participation in Federal Loan Programs. – All community colleges shall participate in the William D. Ford Federal Direct Loan Program.Program, unless the board of trustees of an institution by resolution adopted declines to participate in the Program.
A little background from our friends at Firedoglake:
This was a simple battle of the working class against massive corporate interests where regular Americans finally came out the victors.
It stopped a completely wasteful program that had the government guarantee “private” loans. This had allowed several large businesses – including Bank of America, Wells Fargo and Wachovia – to make huge profits at the expense of the public.
Much of the money saved by ending this corporate welfare now is going to be re-purposed to fund Pell Grants that help low income students obtain higher education.
Republicans in the General Assembly aren't satisfied with merely undermining the public school system by getting rid of thousands of teachers, funneling money into new charter schools, and (coming soon) draining revenues to be used for private school vouchers. Now it's the students' turn to pay, by cutting off access to direct Federal student loans.
And in case you're wondering about potential conflicts of interest from trustees, these who oversee CPCC include a member of Wachovia's Advisory Board, two Wachovia executives, one Bank of America executive, and a former co-President of Wachovia Securities.