The case for fixing today's backward student loan system is simple: According to the Congressional Budget Office, the federal government is wasting $67 billion on subsidies to banks. President Obama and lawmakers, including some Republicans, believe these dollars could be better spent directly helping families pay for college.

Not surprisingly, banks are waging a ferocious battle to save their sweetheart deal by playing fast and loose with the truth. If they succeed, they will put at risk tens of billions of dollars that we would use to increase Pell Grants for students, boost college graduation rates and reduce borrowers' monthly student loan payments.

It's time to set the record straight.

Our bill is good for taxpayers. It would eliminate these needless subsidies...