Sen. Hillary Clinton Unveils Plan to Tackle the Student Loan Crisis
Sen. Hillary Rodham Clinton recently announced the details of a sweeping
plan to help ensure students have continued access to federal student loans amid a flurry of private lenders leaving
the federal student loan program.
“Hundreds of thousands of students who are actively considering how to finance their education could be left in the
lurch, without the ability to pay for college,” Clinton wrote in a press release on April 25.
Clinton urged the Bush administration to act quickly to support her plan, which includes:
- Creating a way for colleges to quickly make a switch from the Federal Family Education Loan Program to the Department of Education’s Direct Loan Program — a move that currently
takes colleges about six weeks.
- Allowing parents’ applications for credit-based federal PLUS loans to be
reviewed on a case-by-case basis. Currently, parents will be denied outright for the low-cost federal loans if they
have defaulted on a mortgage, or if they are 90 days late on a loan payment.
- Authorizing the Education Department to advance money to state or private entities that issue student loans
and to purchase federally guaranteed loans from private lenders that are no longer able to service the loans.
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