(WASHINGTON, DC) – College students will no longer have a choice on where to obtain their student loans if a bill passed today by the House of Representatives becomes law.

The House today voted down party lines to approve H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009 sponsored by Rep. George Miller (D-CA), which strips students of the ability to choose private lenders under the Federal Family Education Loan Program (FFELP) over the Federal Direct Lending Program (FDLP). Democrats voted overwhelming to approve the bill. The legislation eliminates the private lender option by June of next year.

"The public-private student loan program that has been in place since 1965 has provided funding for over 60 million Americans to attend college," says Congressman John Carter (R-TX). "To answer success like that by voting to destroy the system makes no sense for students or higher education."

The Federal Family Education Loan Program (FFELP) last year alone provided college loans for 6.4 million students at 5,000 schools, and has been the overwhelming student loan program of choice for colleges and students, especially among Texas schools and students.

Today’s vote, if allowed to stand, allows a total federal government takeover of the student loan industry. It is estimated to cost taxpayers up to $50.1 billion over ten years, when taking into account the market-risk of inevitable defaults, which Democrats left out of their scoring on the bill. The bill is also estimated to eliminate 30,000 jobs nationwide.

Carter says the economic impact in Central Texas will be especially damaging. "In my district alone, this would directly eliminate over 1,000 jobs, not to mention all the bankers and spin-off businesses that would be negatively affected. After speaking personally with these folks, I know firsthand that many of these employees are the wives of soldiers at Ft. Hood, the last people we would want to hurt while so many of their spouses are deployed overseas protecting our country."

"If this becomes law, it should be one of the first laws to be repealed by a new Congress in January 2011," says Carter. "And it should be a big reason for students and parents across America to make sure that Congress is indeed new."