Congress gives the big <F> to students

[sullie363]

HOUSE PASSES BUDGET RECONCILIATION 216-214!

FOR IMMEDIATE RELEASE:
February 1, 2006

Contact: Jasmine Harris, USSA Legislative Director, (202) 277-1499


Students Outraged At $12 Billion Raid on Student Aid

By a vote of 216-214, the House of Representatives passed legislation that has a net cut of $12 billion from the student loan programs. The student loan program cuts represent one-third of the total spending reduction package offered by House and Senate leadership. Students and families will face increased interest rates at a time when college costs are skyrocketing.
“Instead of investing in higher education and the future of our country, Congress passed legislation that puts college even further out of reach for America’s families,” said Eddy Morales, President of the United States Student Association.

The bill generates over 70% of its total education savings from charging higher loan interest rates to borrowers. “Congress plans to swindle students and families by forcing them to make excessive interest payments on their loans,” said Jennifer Pae, Vice President of USSA.

Most federal student loans will be impacted by the interest rate changes. Stafford loans will move to a fixed 6.8% interest rate and PLUS (Parent Loans for Undergraduate Students) loans will increase to a fixed 8.5% interest rate. “My current Stafford loan interest rate is 4.7%. With a 6.8% fixed interest rate, I will end up paying thousands more in interest payments over the life of my loans,” said Jeannie Biniek, Vice President of Associated Students at the UCLA and USSA Board of Directors Member.

While Congress directs some money toward grant aid and student borrower benefits, the bulk of the cuts will be sent out of the program to pay for tax cuts for the wealthiest Americans. The hit on students and parents are part of a larger package of almost $39 billion in cuts to federal programs like student loans, Medicaid and child care enforcement. A corresponding package of $70 billion in new tax cuts for the wealthiest Americans will be voted on later this week.

“Students made our voice heard by contacting Congress over 30,000 times in the course of our campaign to Stop the Raid on Student Aid and defeat budget reconciliation,” said Morales. “Now students are committed to making sure that Members will hear our voice at the ballot box in November 2006.”

The United States Student Association USSA is the country’s oldest and largest national student organization, representing over a million students nationwide. Founded in 1947, USSA is the recognized voice for students on Capitol Hill, in the White House and the Department of Education.

Thanks guys, you help ensure the future of the country every day.

[RightF00T]

216-214?  Where were the other 28 mother%@!).  I don't even know what to do about this.  It seems those who represent us are straying further and further from what anyone reasonable would want.

[lasersailor184]

Because the United States of America is REQUIRED to pay for everyone's education, right? That's what they are there for, right?  To take money from rich people and give it to students.


Am I right?

[AKS\/\/ulfe]

No, you are an idiot.

I opted to pay for college without taking any loans or aid, and that has required me to work pretty much full time and extend my years in college from 4 to 6 1/2.

This is bull**** though, because quite clearly the desire of the American people is to have aid and loans for aspiring college students that will be paid back in full plus.
-SW

[Pooh21]

I give a big to students everyday, whiny little gimme gimme gimmes, I paid for all my schooling myself.

[ROC]

I thought about responding to this, then thought, why bother.  If the concept isn't grasped as to why it was shaved, no explanation in a quick soundbite will help lol

[AKS\/\/ulfe]

I read your response ROC, and I was in the process of responding. I will ask you, do you know what a loan is? There's no free ride on the backs of the rich there.
-SW

[Ripsnort]

No, the sky is not falling, and yes, you've been had by your local student paper....

It's true that $12.7 billion in the budget bill would be funneled from financial aid ledgers over the next five years to the Treasury. Most of that money, however, would come from a change in how the federally backed loans to students are administered, people on both sides agree, not really from cutting student loans and grants.

Students will pay 6.8 percent on new loans beginning July 1 under the deal negotiated four years ago, not because of this bill.

Rather than allowing banks to collect all of the interest, the budget bill would require lenders to rebate the difference between 6.8 percent and a variable rate that the federal government promises them for administering the loans. Republicans argue the banks would get a windfall without that change.

Parents will pay more on new loans as well, although the budget bill isn't as damaging as critics suggest. Under the same 2002 law that fixed student rates, parent rates also were scheduled to be fixed at 7.9 percent this July. The budget bill increases that rate to 8.5 percent.

Republicans say the bill would help students more than it would hurt them.

"This whole notion that's being bandied about that we are actually cutting aid to students we reject categorically," said Craig Orfield, spokesman for the chairman of the Senate Health Education, Labor and Pensions Committee, Sen. Mike Enzi of Wyoming.

The bill includes clearly positive moves for students. For example, Stafford Loan limits for freshmen and sophomores would go from $3,500 to $4,500 and graduate loan limits also would rise. The bill creates two new grant programs for low-income students.

Other changes, to origination fees and financing for schools making direct loans, would have mixed effects.

Harrison Wadsworth, a lobbyist for the Consumer Bankers Association, said lenders agree with education groups on many key points. Wadsworth said the budget bill has positives and negatives for students and lenders, who have stayed relatively quiet to avoid provoking lawmakers in a budget-cutting mood.

"It's a question of being concerned about it getting worse," he said.

Jasmine Harris, legislative director for the U.S. Student Association, said the government doesn't do American education any good by sticking to the interest rates her group and others originally brokered.

She said "6.8 looked like a really good deal for students . . . Then we saw the scenario where interest rates could go lower than anyone ever anticipated."

[lasersailor184]

I'm the idiot.  If you look to the left of this post you'll see that I go to the most expensive public school in the US.

I never expect anyone to give me a dime that I haven't earned.

[AKS\/\/ulfe]

Your aunt owes you?
-SW

[Flit]

The part where they say that the money will be used to give tax cuts the wealthiest  people is pretty funny.
 I never can figure out why cutting the taxes of the people who pay them is a bad thing.

[lasersailor184]

  She chose to help out.  And then she insulted me and chose not to.

[FiLtH]

I couldnt afford to go to school..actually knew I wasnt gonna go at a young age. Directed myself toward the mechanical trades. Had help from my family though as my dad was a plumber.  I have no kids. I pay taxes here in town for a school I will have no use for. Our taxes have doubled over this monstrosity.

  Too bad..so sad.

 Dad

[Krusher]

Originally posted by Pooh21
I give a big to students everyday, whiny little gimme gimme gimmes, I paid for all my schooling myself.

so did I...

[lazs2]

since when did the congress have money to give anyone?  Does it come out of their pocket?

I have seen the trash schools are turning out....  maybe not everyone should go to these expensive schools.

lazs