Earlier today it looked like student loan reform had run into some serious trouble, but following this afternoon's Democratic Caucus meeting, it seems that the important legislation to cut subsidies to student lenders and use the savings to fund Pell grants -- a major part of President Obama's higher-ed agenda -- is back on track.A concentrated grass-roots lobbying effort, combined with personal discussions at this afternoon's meeting of the Senate Democratic Caucus, seems to have convinced Senate Budget Committee Chairman Kent Conrad that including the student loan bill in reconciliation wouldn't hinder health-care reform efforts, congressional aides told the Prospect. Conrad worried that the addition of the education legislation might present an obstacle to already delicate negotiations to modify the health-care bill so the House would pass it. However, discussions with his colleagues and the Senate's parliamentarian led him to tell The Washington Post today that "we're leaning toward" including student loan reform in the reconciliation process. (The Senate voted to include the legislation in the reconciliation process last April.)
While Hill staff caution that nothing is done until it is done, the news that Conrad is back on board with reformers' original plan to pass the bill is much rosier than this morning's more ominous signs. Senate Leader Harry Reid's office declined to comment on the issue.
-- Tim Fernholz
