AP: House Debates Cutting Student Loan Rates

[Eugene]

House Debates Cutting Student Loan Rates

By NANCY ZUCKERBROD
The Associated Press
Wednesday, January 17, 2007; 7:58 AM

WASHINGTON -- Continuing its march through an agenda of popular legislative initiatives,
the Democratic-led House is considering cutting interest rates on some college student
loans in half.

The House was scheduled to vote Wednesday on the measure, which would help an
estimated 5.5 million students who get need-based federal loans.

-snip-

To avoid increasing the deficit, the bill's cost would be offset by reducing the yield on
college loans the government guarantees to lenders and cutting the guaranteed return
banks get when students default. Banks also would have to pay more in fees.

The House was expected to approve the bill, though its future is uncertain beyond that.
The Bush administration and some top Republican lawmakers oppose it. Sen. Edward
Kennedy, D-Mass., head of the Senate's education committee, plans to pursue broader
education legislation that addresses the proposed interest rate cut.

-snip-

Full article: http://www.washingtonpost.com/wp-dyn/content/article/2007/01/17/AR2007011700526.html

[BonnieJW]

1. I wish they would also reduce the interest on

Parent Plus loans (9.5%). Us middle class families who sent more than one child to college are still paying off these loans. We also make too much money to claim the interest on our taxes. I don't mind paying our fair share, but at least let us take it as a tax deduction.

[caligirl]

2. I hear you, we have two in now and had to do a parent plus this year.

next year we have one in and one getting started in the bush economy, we will not likely get the grant we got this year.

[caligirl]

3. Bush never increased spending on Pell gants over the past 6 years.

""It was difficult Tuesday to find a higher education lobbyist who did not note with irony that this White House, working with the Republican-led Congress, had failed to increase spending on the Pell Grant, the primary aid program for low-income students, for the last five years, which is seemingly about to become six.

All of Tuesday’s maneuvering aside, the student loan legislation is expected to pass the House handily. The only real question is how many Republicans will join the unified Democrats in approving the bill."

— Doug Lederman

http://www.insidehighered.com/news/2007/01/17/loans

[Igel]

4. Does it still leave out grad students?

The version they were talking about a few days ago did.

[caligirl]

7. Not sure, but I don't think they are still left ou based on bush's words here

"A comparable reaction greeted the White House’s announcement Tuesday that the Bush administration, too, would oppose the student loan legislation because it is misdirected to help college graduates (borrowers of subsidized loans don’t pay interest while they are in college) who have “higher lifetime earnings” who don’t need more aid as much as “students and their families who are struggling to meet current and future educational expenses.”

Instead of encouraging more borrowing by lowering interest rates, the White House said in its Statement of Administration Policy, “the Administration would support efforts to direct savings to additional grant support for low-income students.”

It was difficult Tuesday to find a higher education lobbyist who did not note with irony that this White House, working with the Republican-led Congress, had failed to increase spending on the Pell Grant, the primary aid program for low-income students, for the last five years, which is seemingly about to become six."

http://www.insidehighered.com/news/2007/01/17/loans

[Zodiak]

8. I'm very intrested to know that

one month from taking my final exam for my PhD....the debt load is crushing and a major factor in my stress level. A little interest relief would be most welcome, especially when I become a poorly-paid post-doc and going for a faculty position.

[caligirl]

9. as far as loans already taken out, a congressman from NY(dem) said

it won't effect those. that was Tim Bishop.It affects only those taken out this July and forward, it isn't permanent as to the interest rate, they plan to come back and make the interest rate permanent as funding becomes available in the new pay as you go congress.

[Zodiak]

10. I understand

It is the price I paid for taking myself out of the economy for the last 5 years. I'll take that half-measure for my future students and hope that we can get Congress back on the issue when the money is freed up.

I am one of those few young US academics that came from a poor background...the American dream is working for me..so far, but barely. I am grateful and will take whatever lumps come my way because I am one of the lucky ones...most in my old neighborhood are in the military or jail.

[caligirl]

11. We do the FAFSA this month for our freshman student, our senior graduates

this quarter finally, so our financial aid will be a lot less, and with interest on a parent plus loan not affected by any of this we are once again left out, make to much to qualify and not enough to cover the cost. For those who used home equity loans they to got nailed on interest as well.

Lets face it, bush wants us rolled back to before 1900, we are stearage class in his mind.

[Zodiak]

13. Yes, I have noticed

that the ground floor (the freshmen classes) are glutted now with well-to-do, upper-middle class students and many, many foreign nationals. I am seeing less representation from the lower economic classes of America, and that is upsetting (and a direct result of higher tuition and dwindling loans). I am quite certain that if conditions were like today when I was applying for college, I would not have been able to afford it. I probably still cannot afford it, but in for a penny, in for a pound.

I am also seeing far less men graduating, but that is another matter independent of Bush.

[caligirl]

14. There is interest in why fewer males are going to college,

females with better stats for those schools wanting to raise their standing in the rankings? right now our school is in an ambitious building project, new library, new business school building and new building for the Jesuit priests(catholic school). The money raised for student aid was 1 million I think, but the money raised for the buildings was 100's of millions. Needless to say they are limited in the merit or need based aid. I have two sons so I can say I did help keep two men in school for my part. but at every school we looked at the lop sided male to female ratio was noted.

[Vinca]

5. I've been watching all morning and I'm going to have to run out

to the store for another box of Kleenex. Those poor, poor Republicans. It's so sad. And they were so bipartisan over the past 12 years. Democrats are meanies.:cry: :cry: :cry: :cry: :cry: :nopity:

[bluedog]

6. have you ever seen such fraking "whine......asses?"

everything...they are going to "whine" about.....what a group of Rat SOBS

[caligirl]

12. they hope for the uninformed to take up their cause, they have no means

of getting the gavel, so they go for the throat in front of the camera.