House Approves the College Student Relief Act of 2007
I’m
interrupting the regularly scheduled Thursday blog on “Student Loan Advice” to
report on some breaking news. According to a Special Briefing release by the National Council of Higher Education Loan
Programs, Inc.’s “NCHelp,” yesterday, Wednesday Jan. 17, 2007, titled,
“House Approves H.R. 5,” the House of Representatives approved the College Student Relief Act of 2007 by a
veto proof majority “of 356 to 71.” The brief went on to report that “A total
of 124 Republicans voted in support of the bill.”
Act Goes to Senate
What
happens next? The College Student Relief
Act of 2007 will now go on to the Senate where it is NOT expected to be debated
as a “stand alone” piece of legislation but as part if the Higher Education Act
Reauthorization, which will include a proposal on an increase in need-based
Pell Grants from $5,100 from $4,050 per year to students.
NCHelp Comments on the Act
“NCHelp” released
the following statement in response to the House approved legislation:
“The
College Student Relief Act of 2007 (H.R. 5), passed today by the House, shows a
commitment to helping make college more affordable. NCHELP is pleased that
college affordability is a central piece of the House Democratic First 100
Hours legislative package.
The
entire nation acknowledges our critical need for an educated workforce, which
only increases with the advances in science and technology and the fierce
economic competition between countries. Our higher education system must usher
in capable students and ensure that they have the financial support required to
succeed.
With
this acknowledgement comes a need to provide the requisite federal support, and
NCHELP looks forward to working with the Congress on ways to increase funding
for federal student assistance.
We
are concerned that while H.R. 5 would gradually decrease interest rates for
some student loan borrowers who are no longer in school, it does not open the
doors to college for the millions of students who need financial assistance. We
believe that the focus should be on helping today's and tomorrow's students
and, only after their needs are fully met, former students.
When
lawmakers do not consider the possibility of committing new federal funds, the
legislative discussion focuses not on improving access and affordability but on
the recycling of funds to pay for new benefits, as proposed in H.R. 5. To
provide the $7 billion for H.R. 5's interest rate reductions, they are
proposing to once again to strip funds from the Federal Family Education Loan
(FFEL) Program. If lawmakers continue to use one program as a donor program, it
will weaken the entire federal student aid system in the long run. These "one-time"
cuts will never heal.
The
Federal Family Education Loan (FFEL) Program is the nation's largest source of
financial aid for postsecondary education. The program saves students and
parents millions of dollars in interest and fees and provides college access
information, free debt management, default avoidance and loan forgiveness programs.
The FFEL Program is still recovering from the $20 billion in student loan
program cuts that were made last year as part of the Higher Education
Reconciliation Act. Further cuts will result in decreased benefits and
services for students and compromise a program that for 40 years has been
helping students and parents to finance their postsecondary education.
H.R.
5 does nothing to address college access, nor the rising costs of attending
college. Its cuts to the FFELP Program, however, could have a dramatic impact
on access to higher education for millions of future students.”
Be sure to check back often for updates on the quickly
changing world of student loans. I’ll keep my eye on the newswire and let you
know when the Senate gets ready to debate the ‘Reauthorization.”
But don’t forget, the student loan advisors at NextStudent
are helpful and knowledgeable about student loans. They are a trusted source in
getting you the appropriate information about your student loan consolidation,
student loan options and helping students get the college financing they need.
Go to www.nextstudent.com for
more information.
Tune
in next Thursday for my regularly scheduled blog on student loan advice.
Student
Loan Girl