Congress Ahead Of The Curve On Student Aid

	ADVOCATING AID FOR STUDENTS—Higher Education Advocate Luke Swarthout stands with Sen. Bernie Sanders (Vt.) and Sen. Edward Kennedy (Mass.) after the Senate voted to increase student aid.

When we last reported on the progress of the Higher Education Project, we were relieved that Congress had moved away from the 2006 “raid on student aid,” and was taking steps to increase the aid that makes a college education affordable to more students.

We’re pleased to report that Congress has kept student aid off the chopping block, even after the buzz of the high-profile “first 100 hours” has died down. In June, a key House committee approved legislation that would make college more affordable.

Our Higher Education Advocate Luke Swarthout praised the bill for limiting the percentage of income students would spend repaying loans and for increasing funding of Pell grants.

Later in the month, a Senate committee voted to cut $18 billion in subsidies to private lenders and direct $17 billion to student aid.

Coalition Spurs Action
The action came after PIRG was joined by the U.S. Student Association, the AFL-CIO and the American Association of State Colleges and Universities in sending a letter urging Congress to address a set of higher education priorities:

• To increase need-based grant aid by raising the maximum Pell Grant award;

• To make student loans more affordable by lowering interest rates, limiting the percentage of income students spend repaying loans and expanding loan forgiveness programs for critical public service careers;

• To cut waste in the student loan programs by reducing taxpayer subsidies and redirecting those funds to increase student aid and limit debt burden; and

• To make student loans more fair by passing regulations that limit conflicts of interest, make the relationships between colleges and lenders more transparent, and require schools and lenders to inform students of their right to shop around for the best deal.

Also in June, the Senate took up the re-authorization of the Higher Education Act of 1965 and a law to reform the student aid programs.

The two bills to be considered will increase funding for need-based grant aid and help millions of student borrowers manageably repay their college loans.

“The legislation does more than simply protect students from excessively high loan payments,” explained Swarthout. “It fundamentally changes how we treat students who borrow for college. Rather than punishing them for helping to shoulder the burden of paying for their education, this bill will allow students to repay their loans without debt dictating their life choices.”