It passed on a 253-171 vote.

The bill ends the subsidies that the federal government provides to for profit institutions to make student loans, and has that same federal government make the loans.

As Gail Collins notes:

It would simplify the federally guaranteed loan system, save an estimated $87 billion over 10 years and use that money to increase aid to low-income students, improve community colleges and raise standards for early childhood education.

Let us stop here and recall how the current loan system works:

1. Federal government provides private banks with capital.
2. Federal government pays private banks a subsidy to lend that capital to students.
3. Federal government guarantees said loans so the banks don’t have any risk.

And now, the proposed reform:

1. The federal government makes the loans.

Wow. You really do wonder why nobody came up with this idea before.

If you need to know what is wrong with the Republicans, you need go no further than the idea that the Federal government should use taxpayer money to prop up big executive paychecks.

H/t Steve Benen.