Trump Corporate Tax 6-7-25

Donald Trump's agenda regarding corporate tax, particularly for a 15% rate, centers on stimulating domestic production and economic growth. 

Here's a breakdown of his proposals:

1. Lowering the Corporate Tax Rate:

• General Reduction: Trump proposes reducing the corporate tax rate from the current 21% to 20%.
• Incentivizing Domestic Manufacturing: He further proposes a 15% corporate tax rate specifically for companies that manufacture their products within the United States. 

2. Reintroducing the Domestic Production Activities Deduction (DPAD):

• Trump has suggested reinstating a form of the DPAD, which could effectively lower the tax rate for domestic producers.
• This deduction, previously eliminated under the 2017 tax law, aimed to provide tax relief for domestic manufacturing activities. 

3. Potential Effects:

• Increased Domestic Production: The lower tax rate for domestic manufacturers aims to incentivize companies to produce goods within the U.S., potentially leading to job creation and economic growth.
• Enhanced Competitiveness: A lower corporate tax rate, in general, could make U.S. businesses more competitive internationally.
• Potential for Increased Deficit: However, these tax cuts could also lead to an increase in the federal deficit if not balanced by other revenue increases or spending cuts. 

In summary: Trump's agenda aims to use corporate tax cuts, particularly a lower rate for domestic manufacturers, as a tool to incentivize domestic production and boost the U.S. economy. 

https://www.google.com/search?q=trump+agenda+for+a+15%25+corporate+tax+2025

Comments

The 21% Corporate Tax was made permanent in the House Reconciliation Bill in May 2025 to lock in the tax rate.

The Senate sent their amendments to the House. They are currently working toward agreement. Their final Bill will be sent to Trump to sign it into law. 

That leaves Income Tax Rates to be lowered again for US citizens and corporations. The cost of Deportation and the cost of computer systems that will allow automation will need to be funded. DOGE is now operating in Agencies to continue their reorganization. The further reduction in Federal Spending will continue through 2026 to 2028. Further growth in the US Economy will continue to lower US Inflation.

It’s up to US citizens to pursue the 7 million job openings we currently have and pursue future job openings.

It’s up to States to align their education curricula to support the training needed for these new jobs.

Norb Leahy, Dunwoody GA Tea Party Leader

Foreign Companies in US 6-7-25

Foreign auto manufacturing companies can own land and buildings in the United States. However, there are some limitations and regulations, particularly related to agricultural land. While not all states have absolute prohibitions, many restrict foreign ownership of agricultural land. Foreign entities are also subject to disclosure requirements under the Agricultural Foreign Investment Disclosure Act (AFIDA) when acquiring or holding interests in agricultural land.  

Here's a more detailed look:

General Ownership: Foreign manufacturers can generally own land and buildings in the US for their business operations, such as manufacturing plants and offices. 

Agricultural Land Restrictions: Approximately 26 states have restrictions on foreign ownership of agricultural land, either prohibiting it outright or limiting it. 

Disclosure Requirements: The AFIDA requires foreign entities to disclose to the USDA when they acquire or hold interests in agricultural land. 

State-Level Regulations: Some states have enacted laws restricting foreign ownership of land, including both agricultural and other types of real property. 

Examples: Several European automakers, including Volkswagen, BMW, and Mercedes, own and operate manufacturing facilities in US states like South Carolina, Alabama, and Tennessee. 

https://www.google.com/search?q=can+foreign+auto+manufacturing+companys+own+their+own+land+and+buildings+in+the+us

Comments

The low 15% US tax and 100% Depreciation on equipment for “US Approved” Foreign Auto Manufacturers gives them the incentive to relocate Auto Plants in the US. This would include Auto Plants headquartered in Japan and South Korea and other “US Friendly” nations. This makes sense for countries with high US market shares like Toyota, Honda and Nissan in Japan and Hyundai and KIA in South Korea. Relocating Plants to the US shortens the supply chain to the Dealers and encourages more auto parts manufacturing to occur near their US-based plants.

The US Market share for Japan is Toyota at 15%, Honda at 8.8% and Nissan at 5.8%. The US Market share for South Koreas is Hyundai at 11% and KIA at 5%.

Comments

In the 1980s, Japanese companies bought large high-rise office buildings in the US. The appreciation of the value of these buildings stopped and retreated. The Japanese sold these building back to US companies at a discount. In the 1990s, the price of single family homes retreated and later resumed the rise in prices.

Norb Leahy, Dunwoody GA Tea Party Leader

Deportations 6-6-25

Deporting Criminal Illegals is the first priority of the Trump Administration. 

ICE reported their goal of deporting 3000 illegals per day. July 2024 Data: As of July 2024, ICE (U.S. Immigration and Customs Enforcement) had identified 662,566 undocumented immigrants with criminal histories on their non-detained docket. It would take 221 days or 7.4 months to deport the criminal illegals

Deporting Non-Criminal Illegals who failed their asylum status and have deportation orders is the second priority.

In the Trump administration's first 100 days, a large number of arrests and deportations were reported, with a significant percentage of asylum cases denied. Some reports indicate that as of the first 100 days of the Trump administration, a little more than half a million could be deported in 2025 at the current rate. 

Deporting the remaining Non-Criminal Illegals is the third priority.

No Illegals were vetted from 2021 through 2024 and these are included in the Trump Agenda Deportation Plan.

Trump estimated the number of Illegals at 21 million and has claimed that 140,000 have been deported.

That would leave 20.86 million still in the US.

AI Google Search

In March 2025, FAIR estimated that approximately 18.6 million undocumented immigrants resided in the United States. https://www.google.com/search?q=how+many+deportations+from+january+2025+to+present+2025

It's difficult to provide a precise number of deportations specifically related to air arrivals within a particular timeframe. Immigration statistics often don't break down deportations by mode of entry. However, government reports and statements from officials can provide general information on deportation numbers. For example, one report mentioned 139,000+ illegal immigrants deported since the Trump administration took office. 

https://www.google.com/search?q=how+many+deportations+of+illegals+arriving+by+air++from+january+2025+to+present+2025

Estimates indicate that there have been approximately 2 million "got-aways" (individuals who have evaded capture) along the U.S. borders between Fiscal Year 2021 and Fiscal Year 2024. It's important to note that this figure represents known got-aways detected by automated systems, and the actual number could be higher, potentially by as much as 20 percent, according to a former chief of Border Patrol.

https://www.google.com/search?q=how+many+got-aways+were+identified+as+illegals+from+2021+fhrough+2024

Comments

If the estimate of total illegals is around 20 million, it could take 5 years to deport them at the rate of 4 million per year.  Knowing that they will be deported for not being vetted should convince the remaining Illegals to opt for “self-deportation”. If this succeeds, we could see the US meet its deportation goals by 2028.

Norb Leahy, Dunwoody GA Tea Party Leader

Trump Agenda on Illegals 6-6-25

100 Days of Making America Safe Again

“President Trump said from the start: criminal illegals have no place in our homeland. He is keeping his promise.” – Secretary of Homeland Security Kristi Noem  

WASHINGTON – In just 100 days, President Trump and Secretary Noem have delivered major victories addressing the crisis at the southern border, removing violent criminal illegal aliens from American communities, and stopping the flow of illicit drugs into our homeland. He’s accomplished more in 100 days than most presidents achieve in an entire term. 

PROMISES MADE, PROMISES KEPT:   

Thanks to President Trump, we have the most secure border in American history.  

• On day one, President Trump declared a national emergency at the southern border. 

• President Trump immediately reinstated “Remain in Mexico” and ended catch and release.  

• Daily border encounters have plunged 95% since President Trump took office.  

• Under President Trump’s leadership, Secretary Noem and Secretary Kennedy have reunited nearly 5,000 unaccompanied children with a safe relative or guardian. 

• Migrants are turning BACK before they even reach our border— migration through Panama’s Darien Gap is down 99.99%.   

• President Trump is finishing the border wall. The Department of Homeland Security (DHS) already has 85 miles of new construction either planned or under construction. 

• United States (U.S.) Customs and Border Protection (CBP) and the U.S. Coast Guard (USCG) have seized nearly 232,000 pounds of fentanyl and other illicit drugs—stopping them from ever reaching American communities. 

President Trump is fulfilling his promise to carry out mass deportations—starting with the worst of the worst.  

• The Trump Administration empowered our brave men and women in law enforcement to use common sense to do their jobs effectively.  
• DHS repealed Biden-era rules that allowed criminal aliens to hide from law enforcement in places like schools and churches to avoid arrest.   
• DHS returned to using the term “illegal alien” which is the statutory language. President Trump will not allow political correctness to hinder law enforcement.  

• President Trump mobilized the federal government to help with immigration enforcement. DHS deputized the Texas National Guard, Drug Enforcement Administration (DEA), Bureau of Prisons, U.S. Marshals, the Bureau of Alcohol, Tobacco, Firearms and Explosives, members of the State Department and the Internal Revenue Service (IRS) to assist with immigration operations.   

• Operation Tidal Wave, the first 287(g) enforcement operation coordinated with state and federal law enforcement partners, resulted in over 800 arrests. DHS has secured 579 signed agreements with state and local partnerships under 287(g). President Trump and Secretary Noem are empowering state and local law enforcement to get these criminal illegal aliens off our streets. 

• The Trump Administration has arrested over 158,000 illegal aliens in 2025 alone, including more than 600 members of Tren de Aragua.

• Under President Trump, U.S. Immigration Customs and Enforcement (ICE) is targeting the worst of the worst, 75% of their arrests are criminal illegal aliens with convictions or pending charges.  

• To fulfill President Trump’s promise to carry out mass deportations, the administration is now detaining some of the most dangerous illegal aliens, including violent criminals and members of terrorist gangs, at Guantanamo Bay.   

• At President Trump’s direction, DHS deported nearly 300 Tren de Aragua and MS-13 terrorists to the Terrorism Confinement Center (CECOT) Prison in El Salvador, where they no longer pose a threat to the American people. 

• At President Trump’s direction, Secretary Noem launched a multimillion-dollar nationwide and international ad campaign, urging illegal aliens to leave the U.S. voluntarily or face deportation with no chance of return.   

• President Trump ended the CBP One app that allowed more than one million aliens to illegally enter the U.S. The Trump Administration replaced this disastrous program with the CBP Home app, which has a new self-deportation reporting feature for aliens illegally in the country. So far, thousands of illegal aliens have used the app to self-deport.  

• The Trump Administration is enforcing the Alien Registration Act which requires aliens to register with the federal government. If illegal aliens fail to comply, they face fines and imprisonment.   

• Deportations have already exceeded 142,000—this is just the beginning.

President Trump is putting the safety of Americans first and delivering justice for victims of illegal aliens and drug cartels. 

• President Trump signed the Laken Riley Act, which mandates the federal detention of illegal aliens accused of theft, burglary, assaulting a law enforcement officer, or any crime resulting in death or serious bodily injury. 

• President Trump designated international drug cartels and other criminal gangs, such as MS-13 and Tren de Aragua, as Foreign Terrorist Organizations. This enables a whole-of-government approach to dismantle their drug and human trafficking operations. The days of unchecked cartel and gang violence are over.   

• The Trump Administration secured the extradition of 29 Mexican drug cartel members who are facing charges including racketeering, drug-trafficking, murder, illegal use of firearms, money laundering, and other crimes. Some of these individuals include:
• Rafael Caro Quintero, alleged to have been among those responsible for the 1985 murder of DEA agent Enrique “Kiki” Camarena and others. This cartel kingpin unleashed violence, destruction, and death across the U.S. and Mexico and spent four decades atop DEA’s most wanted fugitives list.
• Martin Sotelo, alleged to have participated in the 2022 murder of Deputy Sheriff Ned Byrd.
• Antonio Oseguera Cervantes, alleged to have helped lead the Cártel de Jalisco Nueva Generación.
• Ramiro Perez Moreno and Lucio Hernandez Lechuga, alleged to be high-ranking members of Los Zetas. 

• The Trump Administration extradited Eswin Mejia, an illegal alien arrested for killing 21-year-old Sarah Root in a drunk driving crash, from Honduras.  

• President Trump reopened the Victims of Immigration Crime Engagement (VOICE) office, which was shuttered by the Biden Administration. President Trump and Secretary Noem are standing up for the victims of illegal alien crime and ensuring they have access to much needed resources and support they deserve.  

President Trump is restoring integrity and common sense to our legal immigration system. 

• President Trump ended the broad abuse of humanitarian parole and returned the program to a case-by-case basis. As part of this effort, Secretary Noem terminated the Cuba, Haiti, Nicaragua, and Venezuela parole programs.  

• President Trump restored integrity to our immigration system by returning the Temporary Protect Status (TPS) immigration program to its original status: temporary. No longer will this program be abused and exploited by illegal aliens. Secretary Noem rescinded the previous administration’s extension of Venezuelan, Haitian, and Afghan TPS.     

• President Trump is returning common sense to our legal immigration system and national security by revoking visas of terrorist sympathizers. Those who glorify and support terrorists who kill Americans are not welcome in the U.S. Some examples include:
• ICE arrested Mahmoud Khalil, a former Columbia University graduate student who led activities aligned with Hamas and passed out pro-Hamas propaganda flyers.
• Dr. Rasha Alawieh was deported after she admitted to attending the funeral of Hassan Nasrallah, a brutal terrorist who led Hezbollah and was responsible for killing hundreds of Americans.
• ICE arrested Badar Khan Suri, a Georgetown foreign exchange student whose father-in-law is a senior advisor to Hamas. 

• To keep America safe, DHS is now conducting enhanced vetting of visa applicants, including monitoring foreign aliens’ social media accounts to identify any support for terrorist organizations.   

President Trump is using tariffs as a negotiating tool to force other countries to take decisive action that puts American safety, prosperity, and national security first. 

• President Trump announced reciprocal tariffs on countries that have been ripping off America for years.  

• Unfair trade practices made our supply chain dependent on foreign adversaries, eroded our industrial base, and hurt American workers. This has gravely impacted our national security. Now, President Trump is fighting back and putting America first.  

• President Trump’s tariffs forced Mexico to deploy 10,000 troops on our southern border to stop the flow of fentanyl and illegal aliens into our country and Canada to add thousands of personnel to the northern border.    

Under President Trump, Secretary Noem refocused DHS to its core mission of protecting the American homeland and eliminating government waste. 

• The USCG eliminated an ineffective information technology (IT) program, saving nearly $33 million, and is now focusing resources where they’re most needed to protect our homeland. 

• The Trump Administration stopped aliens on the Terror Watchlist from receiving Medicaid benefits.  

• Secretary Noem ended the Building Resilient Infrastructure and Communities (BRIC) FEMA grant program that was wasteful and ineffective. This resulted in nearly a billion dollars being directed to the Disaster Relief Fund.   

• To stop policies that were magnets for illegal immigration, DHS froze all funding to non-governmental organizations that facilitate illegal immigration and announced a partnership with the U.S. Department of Housing and Urban Development to ensure taxpayer dollars do not go to housing illegal aliens. 

• Secretary Noem ended collective bargaining for the Transportation Security Administration’s (TSA) Transportation Security Officers, which constrained TSA’s chief mission to safeguard our transportation systems and keep Americans safe.  

Bottom Line: President Trump campaigned on border security and immigration enforcement, the American people voted for it, and Secretary Noem and DHS are delivering beyond anyone’s expectations. 

President Trump and Secretary Noem will continue fighting every day to secure our border and keep American communities safe. This is just the beginning of a new Golden Age of America. 

https://www.dhs.gov/news/2025/04/29/100-days-making-america-safe-again

Norb Leahy, Dunwoody GA Tea Party Leader

History of US Universities 6-5-25

Harvard University was founded in 1636. It was officially established by the Great and General Court of the Massachusetts Bay Colony. The university was named after its first benefactor, John Harvard, who donated his library and half his estate to the institution. 

https://www.google.com/search?q=when+was+harvard+founded+and+by+whom 

The first 10 universities founded in the US, in order of founding, are: Harvard University (1636), the College of William & Mary (1693), St. John's College (1696), Yale University (1701), University of Pennsylvania (1740, chartered 1755), Moravian University (1742), University of Delaware (1743), Princeton University (1746), Washington & Lee University (1749), and Columbia University (1754). 

https://www.google.com/search?q=what+were+the+first+10+universities+founded+in+the+US

Some of the US Founders went to these colleges.  John Adams graduated from the Harvard Latin School and Thomas Jefferson graduated from William and Mary.  Ben Franklin worked as a Printer’s Apprentice and George Washington was a Plantation Owner and served in the Virginia Militia. Neither of them attended college. Both were elected to serve in their Colonial Legislatures.

All Founders read books. The Plantation Owners studied science and all of the Founders studied the Enlightenment Philosophers who were recommending reforms to the Monarchy.

In the 1700s Education was largely self-directed. All families had Bibles and home-schooled reading. Most children worked from an early age and learned skills to apply to whatever work they performed. All useful knowledge was respected. Self-Reliance and Personal Integrity were required. The family was the foundation for intergenerational wealth. The knowledge gained by Successful Plantation Owners, Merchants, Skilled Tradesmen and others was highly valued. Solving common problems brought these groups together. Improving transportation of goods to markets and harbors was a primary concern. The common focus was on the Colonial Private Sector Economy.

In the 1800s, proven technologies were applied to agriculture and transportation.

The first railroad in the USA was the Baltimore and Ohio Railroad (B&O), chartered in 1827 and completed in 1830. It was the first intercity railroad and is considered the first steam-operated common carrier.

 https://www.google.com/search?q=first+railroad+in+usa

The U.S. Military Academy at West Point, founded in 1802, is widely considered the first engineering school in the United States. While it began training technically skilled army officers in 1817, other institutions like Rensselaer Polytechnic Institute and Norwich University also claim to be among the first to offer engineering education. 

https://www.google.com/search?q=what+was+the+first+engineering+college+in+the+us

Medical Schools had been operating since 1765. The first Law School was opened in 1784. The first Dental School was opened in 1840.

American college curricula primarily focused on classical languages (Latin and Greek), mathematics, and natural sciences. Students were also expected to study philosophy, ethics, logic, and rhetoric. Courses often included history, literature, and theology, reflecting the societal and religious values of the time. 

https://www.google.com/search?q=what+college+courses

The Library Company of Philadelphia, founded in 1731 by Benjamin Franklin and others, is widely considered the first library in the United States. It was a subscription-based lending library, meaning members paid an annual fee to access the books. The first fully public, tax-supported library was established in Peterborough, New Hampshire in 1833. 

https://www.google.com/search?q=first+library+in+us

Home schooling continued throughout the 1800s in the US.

The Wiscasset Female Charitable Society, founded in Wiscasset, Maine, on November 18, 1805, is considered the first women's charitable organization in the US. The organization was formed by 30 women who pledged $76 (approximately $1,200 today) to assist other women in the community. According to the Grateful American® Foundation, the society's first act was loaning a dress to a woman who had nothing to wear to church. 

https://www.google.com/search?q=when+did+wealthy+wives+form+the+first+charitable+organization+in+the+us

Karl Marx published his Communist Manifesto in 1848.

The first course explicitly identified as "Sociology" in the United States was taught at Yale University in 1875 by William Graham Sumner. While other institutions may have offered related courses under different names earlier, this is widely recognized as the first time the term "Sociology" was used to describe a formal course of study. 

https://www.google.com/search?q=when+was+the+first+sociology+course+offered+in+the+us

The North Bennet Street School (NBSS) in Boston, founded in 1881, is widely considered the first trade school in the United States. Before NBSS, institutions like the Gardiner Lyceum (1823) focused on agricultural education, but NBSS was specifically designed to train individuals in practical trades. North Bennet Street School still operates today, offering a range of programs in fields like carpentry, furniture making, and more.

https://www.google.com/search?q=first+trade+school+in+us

In the 1850s, US college curricula primarily focused on a liberal arts education, emphasizing Greek, Latin, history, and mathematics. Colleges were often small with a limited range of courses, and students were drilled in these subjects through lectures, recitations, and public disputations. While Latin and Greek were foundational, other subjects like logic, ethics, rhetoric, and even some elements of mathematics and science were also included. The curriculum also included courses in philosophy, astronomy, and geometry, particularly in the latter years of study. 

https://www.google.com/search?q=college+curriculum+in+1850+in+us

The Wharton School of Finance and Commerce at the University of Pennsylvania was founded in 1881, making it the first university-based business school in the United States, and therefore, the first school of economics as well. Joseph Wharton, an American industrialist, established the school with an initial pledge of $100,000. 

https://www.google.com/search?q=when+was+the+first+school+of+economics+in+the+us

In 1900, American college curricula emphasized liberal arts, with a strong focus on classical languages (Greek and Latin), rhetoric, ethics, and history. Mathematics, logic, and some natural sciences were also included, but often in a more limited capacity. The emphasis was on a broad, foundational education rather than specialized vocational training. 

https://www.google.com/search?q=college+curriculum+in+1900+in+us

Comments

Todays Universities continue to follow the established pattern of the original “Liberal Arts” emphasis of the 1800s.

Medical Schools were added in the 1900s along with Law Schools, Dental Schools, Engineering Schools and Business Schools to serve occupational education needs.

Todays Universities are focused on inventing all forms of Marxism and Indoctrination as their main focus. The Faculties in the Professional Schools do not support their own University Administrations and now need to weigh in. They should threaten to leave the Universities and go on their own.

US Law Schools need serious reforms aimed at restoring the US Constitution’s Original Intent. Law Students need to understand Free Market Economics and US History.

Norb Leahy, Dunwoody GA Tea Party Leader

US Universities who ban Disruption 6-5-25

One option for Harvard, Columbia, Brown and other disruption-infested Universities is for them to develop anti-disruption policies and enforce them. 

There have been protests at Washington University in St. Louis (WashU) regarding various issues, including the war in Gaza and divestment from Boeing. Protests have led to arrests and suspensions of students, with the university responding that the demonstrations were disruptive and violated their policies. 

Specific Examples:

Pro-Palestine Protests: Students and faculty have protested against the university's investments in companies like Boeing, which they argue support the Israeli military.

Anti-War Protests: Protests have taken place, including a large demonstration on April 27, 2024, that resulted in arrests and suspensions. 

Demands for Divestment: Student groups have called on WashU to divest from companies that are perceived as supporting the war in Gaza or other conflicts. 

WashU's Response:

Policy Enforcement: The university has stated that it supports free speech and assembly but also has a policy against demonstrations that are disruptive or violate campus regulations. 

Arrests and Suspensions: In some instances, protesters who violated university policies have been arrested and suspended. 

Disbanding Protests: WashU has taken action to disband protests that have been deemed disruptive or that have involved unauthorized encampments. 

https://www.google.com/search?q=are+there+protests+at+washington+university+in+st+louis

Comments

I recommend that all universities adopt anti-disruption policies and enforce them.

I worked at Washington University in St. Louis from 1971 to 1975. I was hired by Dr. Bill Danforth, then Vice Chancellor for the Medical Campus to automate University Personnel Information and establish a Personnel Office the Medical Campus. I also defeated a union organizing attempt with a pro-university vote of 80%. Dr. Bill Danforth was elected to become the University Chancellor in 1972. I moved to the Main Campus and continued my project work that expanded to main campus union negotiations and non-academic employee compensation. The main campus union was decertified in 1974. I completed my projects in 1974 and resigned to return to manufacturing.

The Professional Campuses at WashU thought the Sociology Department was nuts. I am not surprised to see that they have adopted effective policies to ban disruption.

True Free Speech should be expressed in Debates between Liberals and Conservatives. Campus Police should attend to keep the peace.

Norb Leahy, Dunwoody GA Tea Party Leader

US Student Loan History 6-4-25

The federal government began guaranteeing student loans provided by banks and non-profit lenders in 1965, creating the program that is now called the Federal Family Education Loan (FFEL) program. The first federal student loans, however, provided under the National Defense Education Act of 1958, were direct loans capitalized with U.S. Treasury funds, following a recommendation of economist Milton Friedman. But when Congress wanted to expand on that start, budget rules made the guarantee approach seem more attractive. Today, this system of guaranteed student loans has been entirely replaced, and all new loans are issued directly by the Department of Education. 

Under 1965 budget rules, a direct loan would have to show up in the budget as a total loss in the year it was made, even though most of it would be paid back with interest in future years. In contrast, a guaranteed loan, which placed the full faith and credit of the United States behind a private bank loan, would appear to have no up front budget cost at all -- because the government’s payments for defaults and interest subsidies would not occur until later years. This raised concerns among economists, who worried that the government was making financial commitments without accounting for the ultimate costs.

In 1990, economists got what they wanted. With President George H.W. Bush’s signature on the Federal Credit Reform Act (which was included in a larger budget reconciliation bill, the Omnibus Reconciliation Act of 1990), all government loan programs—whether guarantees of commercial loans, or loans made directly from a federal agency—would have to account for their full long-term expenses and income. Every loan program would have an estimated “subsidy cost.”

The subsidy cost is the amount of money that needs to be set aside when the loan is made in order to cover the costs to the government over the life of the loan. According to the Government Accountability Office, the old approach "distorted costs and did not recognize the economic reality of the transactions," while the new approach "provides transparency regarding the government's total estimated subsidy costs rather than recognizing these costs sporadically on a cash basis over several years as payments are made and receipts are collected." More information on student loan budget rules is provided here. This more rational approach to budgeting changed the nature of policy discussions on Capitol Hill. Student loan programs were among the first to be affected.

Prompted by an analysis from the Bush administration indicating that direct loans would be less costly and simpler to administer than guaranteed loans, Congress created a direct lending pilot program in 1992. In 1993, newly elected President Clinton proposed replacing the guarantee program with the direct approach as part of his deficit reduction plan. Estimates from all of the government's budgeting and auditing agencies showed that direct lending would deliver the same loans to students at significantly lower cost to taxpayers.

As part of the 1993 budget agreement, Congress passed a budget reconciliation bill (the Omnibus Reconciliation Act of 1993) that would phase in direct lending, starting with colleges that volunteered to participate and giving the Secretary of Education the power, if necessary, to require colleges to switch until at least 60 percent of loans nationwide were direct. While the law called for direct lending to replace guaranteed loans, it was silent about what would happen beyond the 60-percent mark, since that was outside of the five-year window covered by the budget.

In 1994, the new Republicans leadership in Congress targeted direct lending for elimination. However, many college and university officials were dissatisfied with the guaranteed loan system and optimistic about the new alternative. Under the guarantee system, financial aid administrators had to deal with what the Government Accountability Office labeled a “complicated, cumbersome process,” disconnected from other federal aid and involving thousands of middlemen. Hundreds of institutions were already participating in the direct loan program, which operated in tandem with the other federal aid programs.

Ultimately, Congressional leaders stopped short of eliminating direct lending. Instead, in the 1997 Omnibus Consolidated Appropriations Act, they prohibited the Department of Education from encouraging or requiring colleges to switch to the direct loan program. In theory, this maximized choice: schools could choose to participate in one program or the other. In practice, those profiting from the guarantee system could use their substantial resources to lure or retain colleges and universities, while the direct loan program was not allowed to make its own case. Not surprisingly, campus participation in the direct loan program declined.

In 2003, a team of investigative reporters at U.S. News and World Report looked into what was causing some colleges to switch back to the guarantee program. Their front-page story found that much like old-time political ward bosses, the student loan industry “used money and favors, along with their friends in Congress and the Department of Education, to get what they wanted.”

By 2007, new volume in the direct loan program had reached the lowest share of total federal student loan volume since it began in the 1990s. This trend, however, reversed in 2008. Widespread credit market disruptions in 2008 and 2009 threatened the ability of many private lenders to make loans under the federal guaranteed student loan program, and numerous private lenders discontinued participation in the program. In response, schools that previously participated in the guarantee program switched to the direct loan program, and direct loan program volume, as share of total loan volume, began to increase in 2008.

Legislative responses to credit market turmoil also dramatically changed the structure and operations of the FFEL program. Congress and President George W. Bush enacted a temporary program in May 2008 to allow the U.S. Department of Education to buy guaranteed loans made by private lenders. The proceeds from the loans would be used to originate new student loans. The temporary program, the Ensuring Continued Access to Student Loans Act (ECASLA), marks a major historical change in the guaranteed loan program, as it provides federal capital to private lenders making student loans. In this regard, the guaranteed program now shares more characteristics with the direct loan program. 

Finally, President Barack Obama proposed in his fiscal year 2010 budget request to Congress a full elimination of the FFEL program. He argued that subsidies paid to private lenders under the program were unnecessary and that cost savings could be achieved if all federal student loans were made through the direct loan program.

In 2010, Congress passed and the President signed into law a bill that eliminated the FFEL program for all new loans made as of July 1, 2010. All federal student loans have been made under the Direct Loan program as of that date. The Congressional Budget Office estimated that the elimination of the FFEL program under the law would generate $68.7 billion in savings over the next ten years. These savings were used to increase funding for the Pell Grant program.

https://www.newamerica.org/education-policy/topics/higher-education-funding-and-financial-aid/federal-student-aid/federal-student-loans

U.S. student loans have not been transferred to the Small Business Administration (SBA). A court order blocked the Trump administration's plan to transfer the $1.6 trillion student loan portfolio to the SBA. The plan was not implemented because it would have required Congressional approval. For now, borrowers' federal student loans are still held by the Department of Education. 

https://www.google.com/search?q=have+us+student+loans+been+transferred+to+sba

Comments

The Student Loan boondoggle began in 1965, during the Lyndon B Johnson administration. It was expanded in 1990 by George HW Bush in 1990.  It was further expanded in 2010 by Obama.

Norb Leahy, Dunwoody GA Tea Party Leader