In an effort to cut the interest rates in half on student loans before they increase on July 1 and to provide better access to college, Sen. Richard J. Durbin, D-IL, who also serves as assistant senate Democratic leader, in conjunction with Rep. George Miller, D-CA, senior Democrat on the House Committee on Education and the Workforce, introduced April 13 the Reverse the Raid on Student Aid Act of 2006, or H.R. 5150. Interest rates would be cut for student borrowers and parent borrowers alike.
The bill comes on the heels of the March 30 passing of the College Access and Opportunity Act of 2006, or H.R. 609. Miller originally presented an amendment to H.R. 609, also called Reverse the Raid on Student Aid; however, in a vote of 220 to 200 the House voted against that amendment.
Bill to Provide Better Access to College
By setting interest rates at 3.4 percent for Stafford Loans and 4.25 percent for PLUS Loans disbursed on or after July 1, the new legislation is intended to provide college access to all those students who qualify for a higher education.
Durbin and Miller, in a telephone press conference, expressed their intention to try to push the bill through Congress before the interest rates increase.
Convincing Republicans of the Bill’s Need
In order to receive the needed support for the bill, the legislators must convince a variety of representatives, mainly Republicans, of the extreme need for the bill and the advantages it will bring to students. In effect, Republicans will have to be persuaded to spend the approximate $37 billion over five years required to slash the interest rates in half.
“The high cost of tuition should never prevent a qualified student from getting a college education, but Republican leaders in Congress apparently don’t see it that way,” Miller said in an April 13 press release distributed from his office. “Democrats want to take America in a new direction, and that includes reversing the Republican raid on student aid and making college more affordable for all students and families.”
According to the release, the Republicans in Congress were behind the recent $12.7 billion in cuts to the federal student loan program. Those cuts have put college students and their families in a no-win situation. The price of college has skyrocketed throughout the years, and the “Republican Raid on Student Aid,” according to Miller and Durbin, has not helped in any way, as it has made college less affordable for those who have difficulty paying for it in the first place.
It’s Time to Act
“Unless we act now, starting July 1st, the price of a college education will increase dramatically for students across the country,” Durbin was quoted as saying in the press release. “New interest rates on student loans could make the ticket price of a higher education unaffordable, and cost students the opportunity to get a college education.”
According to recent reports, the press release said, the price of tuition, fees and room and board at four-year public institutions from 2001 through 2006 increased by 44 percent. Additionally, the U.S. Department of Education said during the past decade that average student debt rose more than 50 percent.
As stated in Miller’s press release, Durbin said, “The concern for our global economic viability is real. Raising interest rates on today’s students shortchanges our children while threatening our country’s ability to remain competitive in the global marketplace.”
Durbin and Miller hope that students and parents will work to try to gain support for the new legislation. Those concerned easily can contact their congressional representatives and ask them to approve the bill. Representatives can be contacted in writing by going to http://www.house.gov/writerep/, or by calling (202) 224-3121.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more NextStudents’ Student Loan Consolidaiton and College Loans programs.
============================ The End =========================
0 comments:
Post a Comment