Student Loan Overhaul Could Be Added to Health Care Bill

Think health care reform is complicated? It could become even more so. Democratic leaders are considering adding President Obama's plan for overhauling the student loan program to the mix.

If they can pull it off, the combo bill would let Obama and his allies in Congress claim victory on two of the president's biggest priorities. That would make for a grand bill-signing ceremony at the White House, but it's far from a done deal. Democratic leaders met for two days this week on Capitol Hill with White House Chief of Staff Rahm Emanuel to gauge whether the legislative merger is doable, The Washington Post reported.

The attempt to expand the health legislation could lead to its undoing at a critical juncture. "I think it threatens the health care bill," said Senate Budget Committee Chairman Kent Conrad (D-N.D.) "It would threaten to sink them both."

Obama wants to increase student Pell Grants and diminish the role of private lending companies in the loan program, which is intended to help families finance college educations. But in a weak economy the projected cost of the makeover has gone from a savings to a deficit for the federal budget.

The Post said one participant in the closed-door talks said the collective view seemed to be shifting away from inclusion of the loan program changes in the broader health bill.