Obama: Student loans, free Internet

by Christi Parsons

TROY, N.Y. -- President Obama today called for support of his plan to expand loan and grant programs for college students, and also embraced new federal rules coming out today that will require Internet providers to treat all Web traffic equally.

A White House-backed measure now before the Senate will help more students with financial aid for secondary education and remove banks as the unnecessary "middle man" in the lending process, the president told a crowd gathered at Hudson Valley Community College over the noon hour.

Meanwhile, the new FCC rules due out today are designed to prevent Internet providers from blocking or slowing high bandwidth traffic that taxes their networks - something which Obama said would unleash the "full power of the Internet" and allow innovation to flourish.

The president's explicit message was about making fundamental changes to the American economy that will not only spur recovery, but also place it on firm ground for future growth.

But the speech also carried an implicit message as the president embarks on a week devoted to foreign policy: While he will be wrestling with difficult global troubles at the United Nations General Assembly and a meeting of the G20 nations, Obama still has his eyes on the domestic front.

The president was greeted at his arrival at Albany International Airport today by an embattled New York Gov. David Paterson, who has been urged by leaders within his party - including the president - not to seek election next year.

Paterson, the former lieutenant governor, replaced former Gov. Eliot Spitzer, who resigned amid a personal scandal involving his use of a professional escort service.

In a bit of side drama today, Obama had two cordial - albeit brief - public interactions with Paterson, a fellow Democrat whom the president has counseled not to seek reelection.

As he stepped off Air Force One, Obama chatted with Paterson. Then, during the community college event, the president acknowledged the governor's presence at the beginning of his speech and called him "a wonderful man."

As soon as Obama arrives in New York City this afternoon, the president will head for the taping of an appearance on the Late Show with David Letterman. The president will be the sole guest on the late-night talk show tonight. At the top of his list of talking points is his drive to reform health insurance.

Even as the president was en route to the community college, though, the White House was wrestling with a crop of vexing international issues. Aides to the president did not dispute the veracity of a story in the Washington Post this morning that details a report from the U.S. and NATO commander in Afghanistan, who says more troops and a realignment of strategy are necessary in order to avert failure in the mission.

"The president obviously has seen Gen. McChrystal's report," spokesman Robert Gibbs said, and "is working through some of the strategic assessments that the president thinks need to be evaluated."

In Troy, Obama toured a classroom alongside Jill Biden, wife of Vice President Joe Biden and a teacher at a community college in the Washington, D.C., area, and talked to school officials about his vision for incorporating education in the long-term recovery of the American economy.

Increasing grants and loans available to students is key to that plan, Obama said. A bill backed by the White House and passed by the House last week would increase funding for the Pell Grant program and also make the government a direct lender of student loans.

"Right now, the federal government provides a subsidy to banks to get them to lend students money," Obama said. "The thing is, the federal government guarantees the loan in case the student doesn't repay . . . If we simply cut out the middle-man, and lent directly, the federal government would save that money, and we could use it for what it is actually meant for: helping students afford and succeed in college."

The proposal is under consideration in the Senate.

The president also spoke out in support of new rules coming soon from the head of the Federal Communications Commission, requiring Internet providers to respect something called "net neutrality" - the idea that all Web traffic should have the same access to the Internet highway.

The new rules are "an important reminder that the role of government is to provide investment that spurs innovation and common-sense ground rules to ensure that there is a level playing field for all comers who seek to contribute their innovations," the president said.