Reverse The Raid On Student Aid Act Introduced To Cut Interest Rates Article

	1888 Articles Home \| Finance Articles \| Loans Articles	Loans RSS
Reverse the Raid on Student Aid Act Introduced to Cut Interest Rates

Jeff Mictabor is an enthusiast on the topic of student loan issues in the news. He has been writing for the past 10 years for a variety of education publications. He now offers his writing services on a freelance basis. http://www.nextstudent.com

Author: Jeff Mictabor

Article Tools:

The Reverse the Raid on Student Aid Act of 2006, H.R. 5150, was introduced April 13 to cut interest rates in half for student and parent borrowers by fixing Stafford Loan interest rates at 3.4 percent and PLUS Loan interest rates at 4.25 for loans disbursed on or after July 1.

The bill, spearheaded by Sen. Richard J. Durbin, D-IL, assistant senate Democratic leader, and Rep. George Miller, D-CA, senior Democrat on the House Committee on Education and the Workforce, is intended to ensure that all eligible students gain admittance to college.

Durbin, Miller Take Action

“Unless we act now, starting July 1st, the price of a college education will increase dramatically for students across the country,” said Durbin in an April 13 press release distributed from Miller’s office. “New interest rates on student loans could make the ticket price of a higher education unaffordable, and cost students the opportunity to get a college education.”

The federal student loan program’s recent problems began this past February when the Republican-led Congress passed a bill that included cuts to the program totaling $12.7 billion. Then on March 30, the College Access and Opportunity Act of 2006, or H.R. 609, passed. At that time Miller introduced the first Reverse the Raid on Student Aid amendment to help curtail some of H.R. 609’s negative impact on the student loan program, but to no avail. Miller’s amendment then was shot down in a House vote of 220 to 200.

Students and parents are feeling the pinch. The cost of college has been skyrocketing over the years, making it increasingly more difficult to pay for higher education.

Getting the Bill through Congress

Durbin and Miller see the need for positive change and would like to see the bill get through Congress before the July 1 increase on interest rates, they said in a telephone press conference.

However, first the legislators must receive backing of the bill mostly from Republican representatives who must be satisfied with the benefits it will bring students and that it is worth the $37 billion expense over five years to cut in half interest rates.

Durbin and Miller strongly recommend that students and families convince their congressional representatives of the need for the Reverse the Raid on Student Aid bill.
Concerned citizens can write their representatives through http://www.house.gov/writerep/, or they can call (202) 224-3121.

Making College Access More Attainable

According to Miller’s press release, he said eligible students should be able to attain a college education regardless of the cost of tuition. “Democrats want to take America in a new direction, and that includes reversing the Republican raid on student aid and making college more affordable for all students and families,” he said.

The release said recent reports show that from 2001 through 2006 the cost of tuition, room and board, and fees at four-year public colleges and universities jumped by 44 percent. Student debt in the past 10 years increased more than 50 percent, the U.S. Department of Education said.

Durbin expressed his concern that implementing higher interest rates on students “shortchanges our children while threatening our country’s ability to remain competitive in the global marketplace.”
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more NextStudents’ (http://www.nextstudent.com) Student Loan Consolidaiton and (http://www.nextstudent.com/private_loans/private_loans.asp)College Loans programs at http://www.nextstudent.com/

About Author

Reverse the Raid on Student Aid Act Introduced to Cut Interest Rates