Job Spectrum

Big state, job losses, a giant Fed.takeover. These gut-punch phrases did not defeat the health-care bill. The phrases also were hurled at a correction of loans - and, luckily, failed again.President Obama signed crucial and welcome changes to the country's campus loan programme. The reforms should save the country billions and give more scholars a crack at a university degree.

Why it took so long is a minor scandal. Since the 1970s, Fed cash was doled out to banks to loan to scholars. In practice, though , the banks picked up a good charge and fobbed off the bad loans to the govt. . It had been a no-lose deal for these banks.

Nevertheless it endured, mostly thru pitiless lobbying from banks like Sallie Mae. This year, the dam broke. The administration voted to put Washington in command of the loans, a shift predicted to save $68 bln over ten years. That may permit loan boundaries to rise barely, expand Pell Grants to defray teaching bills for disadvantaged scholars and invest $2 bln in community universities.

But the changes failed to come simply, regardless of the sustained and gallant efforts of Rep. George Miller, D-Martinez. Banks asserted they would be made to lay off workers who service the pool of 8,000,000 loans. Critics kicked mud on the notion that Washington could run the programme. Those concerns could have more credibility if the banks served a significant role in bringing potency or invention to a system built on federal money. For banks, it's a no-risk gravy train.

Beginning later, more scholars will get loans and on better terms. A varsity degree - a regularly slippery and always expensive ticket to a more enjoyable life - will be in reach of more scholars. This reform merits high marks.