Democrats in Congress Work to Reform Student Loan System
Posted by Stephanie Taylor on June 21, 2007 at 11:02 AM
Democrats in Congress are working on sweeping changes to the student loan system, with legislation approved by both the Senate and House education committees that would cut federal subsidies to lending companies by as much as $19 billion, channel most of those savings to student aid, and ease repayment rules for borrowers.
The Senate measure would boost the maximum Pell grant, the nation's main aid program for low-income students, from $4,300 to $5,400 a year. The House measure calls for a smaller grant increase but would cut in half the interest rates on federally backed student loans, to 3.4 percent.
Lobbyists for the student loan industry attacked the legislation, saying that it might force some lending companies out of business. But supporters say that this legislation will aid those who need it most--the students.
Rep. George Miller (D-CA), chair of the House Education Committee, called it, "the biggest single investment in college financial aid since the GI Bill."
Both the House and Senate are expected to vote on the bill by the end of July.
Comments (10) «
HALLELUYAH! It's about time Congress did something about this. I am drowning in Student Loans due to a high interest rate I have from years ago.
Considering the low pay for state employees in this neck of the woods, and the fact that many state positions require college educations, why doesn't someone initiate a tax credit, or a payoff assistance of some sort for student loans for state government employees.
My daughter works for Montana's Public health and Human Resources, and she's no making a whole lot more than her clients.
The lobbyists are attacking the legislature because is not convenient for their clients. They are more interested in how the loan companies will go out of business. Those loan companies deserve to go out of business. That's why the aid is given to low income students, because they can't pay for their education. How is that possible that they want to have all the students paying them back for 10 or 15 years? The Democrat Party is the only one which can do something for us.
Sweeeeet
:)
I'm a low-income student myself and this is music to my ears.
I've said it before and I'll say it again, nobody should start their post-college life with a negative sign. I'm glad the Dems are pushing my words closer to reality. Let's get one of these passed so I have something new to my "Reasons Why I Love The Democrats" list!
it's nice to see our senators and reps doing something to help the average person,it's been too long watching the rich get richer and the poor getting poorer.
Financial aid is essential for most students to attend college, and/or receive training. Raising the amounts available for grants while increases the number of people eligible is important. Federally guaranteed loan amounts need to be large enough to pay for tuition, room, board, computers, and other expenses, and with very low interest rates....without up front loan fees. Repayment of student loans needs to be very flexible and with very low payments, and no reporting on the student's credit report. Educating Americans provides a very high return on investment, in many ways. This is money very well spent.
The Pell Grant does not need to be any set amount. Legislation should say that the amount of the Pell Grant should be equal to the national average cost of tuition in a four-year public university. Interest rates on loans should be fixed at 0.5% above prime. That way, we can survive if there is another Republican majority. The Repugs wouldn't be able to just ignore the program and let the amount dwindle into nothing. They would have to actually vote to lower it if they wanted to cut funding.
Students of higher education need all of the help they can get financially. Costs are rising in all areas of our lives, and nothing promotes quitting school like lack of funds or fear of the inability to pay back what you have had to borrow. We are now literally in competition worldwide for jobs. If the US cannot afford to insure affordable higher education, we will lose our ability globally to compete. We need our government's power to make higher education affordable for all who are trying to better themselves, and in doing so, keep the US a significant competitor in this world-wide market.
As a sophomore in college who is relieing on student loans and the Pell Grant to fund my education, I welcome the action taken by the House and Senate to increase the Pell Grant and the reduction of student loan intrest rates. As oppoed to what the Republicans did while they controlled Congress, which was to hurt students by cutting Federal Student Aid, this Congress has and continued to show that it is committed to helping students attain the funds needed to further their education.
any help in college is greatly appreciated. the more money students can get to help them pay for books and tuition means we don't have to work long hours at our part time jobs. the more hours we need to work to pay for college takes us away from the studies. i left college for two years because of that reason. i am 22 and proud to be back on track with college and don't want to be stressed out with going to school 13 hrs plus study time and putting in 30+ at work, it's contradictory and not beneficial to persuing an education. - a.c.c.d student, san antonio, tx
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