Senator Chuck Grassley is still misleading Iowans about what’s in the health insurance reform bill Congress passed last month. On April 1 he had this to say in Mason City:

Several residents were worried about what would happen to their health care premiums now that the president has signed the health care law. The mandate requiring everyone to purchase health insurance was also a worry.

“It’s questionable whether the federal government can require you to buy anything,” Grassley said.

One woman asked Grassley if federal funds connected to the health care law could be used to pay for abortions.

Grassley said he believes that the subsidies the poor will receive to purchase insurance could be used to pay for abortion. Democrats believe an executive order signed by President Obama at the insistence of Michigan Democratic Congressman Bart Stupak stops any federal funds from being used for to pay for abortions.

“I think he was sold a bill of goods that an executive order would take care of it,” Grassley said. “I am pro-life and that’s how I feel about it.”

Grassley conveniently failed to mention that he supported a health insurance mandate in 1993, in 2007 and even last summer. He only started questioning the legality of a mandate last fall. Contrary to what he told the Mason City crowd, legal scholars don’t think much of the constitutional arguments against health reform. It’s also ludicrous for Grassley to charge that federal funds will be used for abortions. On the contrary, Obama’s executive order is likely to end all private insurance coverage of abortion, even for women who don’t receive a dime in government subsidies.

Grassley is smart enough not to call health insurance reform “socialist”, but when someone in the Mason City audience asked about the government taking stock in General Motors and some large banks, Grassley drew applause by saying, “If you’re listed in the Yellow Pages, I guess the president thinks that the government ought to nationalize you.”

As far as I can tell, Grassley is no longer claiming that health insurance reform will let the government “pull the plug on grandma.” A poll taken in late February found that a majority of Iowans think Grassley “embarrassed” our state by making that allegation last summer. In the same poll, only 42 percent of respondents said Grassley should be re-elected. The poll results were released this week; Iowa Independent analyzed the results here, and Senate Guru did the same in this guest post at Bleeding Heartland.

The Senate race still looks like Grassley’s to lose, but Iowans are aware that the senator stretched the truth about end-of-life counseling. We need to call him out on his other distortions too, like his claims about student loan reform. According to Grassley’s pretzel logic, ending big federal subsidies to banks will somehow impose a “tax” on students.

I encourage all Iowa Democrats to get involved in supporting one of Grassley’s challengers: Roxanne Conlin, Tom Fiegen and Bob Krause.

President Barack Obama signed the Health Care and Education Reconciliation Act yesterday, which amended the health insurance reform bill and changed the student loan system. I’m not wild about the health reform, which made almost every concession major industries wanted, but the student loan reform is without question a step in the right direction. As Obama noted yesterday, the bill pitted “the interests of the banks and financial institutions against the interests of students.” For once Congress did the right thing by moving to a system of direct student lending. The money saved by not subsidizing private banks that make student loans will support Pell Grants and several other programs.

Today the White House released a summary of benefits that student loan reform will bring to Iowans. The Pell Grant increases will mean an extra $291 million for Iowa students by the 2020-2021 academic year. Increases for the College Access Challenge Grant Program will bring about $7.5 million to Iowa over the next four years, and during the same period our state will receive at least $10 million over four years from a program aimed at community colleges and career training institutions. I’ve posted more details about those and other benefits after the jump.

Who could be against student loan reform that increases grants for students while saving the government money? Leave it to Republican Senator Chuck Grassley to find some convoluted way to characterize this reform as a “tax” on college students. Click over to Radio Iowa to read more. The Iowa Democratic Party blasted Grassley’s distortion as well as his abysmal voting record on student loans and grants. An excerpt from that release is after the jump as well.

The student loan reform that Congress just approved as part of the budget reconciliation bill has been overshadowed by the health insurance reform process, but it’s very good news for future college students. Senator Tom Harkin’s office summarized some benefits in a March 18 press release, which I’ve posted after the jump. The most important change is that the government will stop subsidizing banks that currently make big profits on student lending. Instead, the federal government will expand its direct student loans, saving $61 billion over 10 years. Most of the savings will go to increase Pell grants.

Just a couple of months ago, student loan reform appeared endangered because of Republican obstruction and corporate-friendly Democrats who didn’t want to cut student loan companies like Sallie Mae out of the equation. In early February, the New York Times reported on the extensive lobbying campaign against this bill. (One of the key lobbyists for the banks was Jamie Gorelick, a familiar name from Bill Clinton’s administration.)

Scott Brown’s victory in the Massachusetts Senate election made it even less likely that Democrats could round up 60 votes to overcome a filibuster of student loan reform.

Fortunately, Senator Tom Harkin and other strong supporters of this reform were able to get the measure included in the budget reconciliation bill that was primarily a vehicle for passing “fixes” to health insurance reform. Not only is student loan reform a good idea in itself, I agree with Jon Walker that adding it to the health reform improved the political prospects for getting the reconciliation bill through the Senate. Democrats from several states were said to be balking on the student loan reforms, but only three senators who caucus with Democrats were willing to vote no on yesterday’s reconciliation bill.

This reform is scaled back somewhat from the original proposal, which would have saved $87 billion over 10 years and passed the House of Representatives last September on a mostly party-line vote. The original proposal would have provided larger increases in Pell grant funding, because it was budget neutral. In order to be included in the budget reconciliation measure (and therefore not subject to a Republican filibuster in the Senate), the student loan reform had to reduce the deficit. But that compromise was well worth making in order to move to direct lending by the government.

Regarding health insurance reform, financial regulation and many other issues, I’m one of those “cynics and naysayers” President Obama decried in yesterday’s speech in Iowa City. But this student loan reform is a big step in the right direction, and the Democrats in the White House and Congress who kept pushing for it deserve credit.

Following up on the diary I posted this morning, this post compiles links to Bleeding Heartland’s coverage of national politics from July through December 2009. Health care reform was again the number one topic. I wish there had been a happy ending.