Reverse the Raid on Student Aid Act introduced to reduce interest rates
The inverse of the raid on aid Student Act of 2006, HR 5150 was introduced April 13 cut interest rates in half of the student and parent borrowers by fixing interest rates of Stafford loans to 3.4 percent and loan interest rates to 4.25 PLUS loans on or after July 1.
The bill, headed by Senator Richard J. Durbin, D-IL, Assistant Democratic leader of the Senate, and the representative George Miller, D-CA, senior Democrat on the House Committee on Education and the Workforce, is designed to ensure that all students gain admission to the university eligible.
Durbin, Miller Take Action
"If we do not act now, from 1 July, the price of a college education will increase dramatically for students through the country, "said Durbin in a press release dated April 13 distributed in the office of Miller." New interest rates on student loans could make the ticket price of higher education unaffordable, and students the opportunity cost of obtaining a university education. "
The federal student loan program recent problems began this past February when Republican led Congress passed a bill included in the program reductions totaling $ 12.7 billion. Then on March 30, access to College Opportunity Act of 2006, or HR 609, passed. At that time, Miller presented the first Reverse the Raid on Student Aid to assist Amendment to reduce some of HR 609 of negative impact on the student loan program, but in vain. Miller Amendment, and was shot during a House vote of 220 to 200.
Students and parents are feeling the effects. The cost of college has been Soaring over the years, making it increasingly difficult to finance higher education.
How the bill through Congress
Durbin and Miller see the need for positive change and want to see the bill get through Congress before the increase July 1 on interest rates, they said in a conference call.
However, first the legislature must supported the bill for most Republican representatives who must be satisfied with the benefits it will bring to students and it is spending 37 billion dollars over five years to reduce interest rates and a half.
Durbin and Miller strongly recommend that students and families to convince their representatives in Congress the need for the back of the raid on the bill of student aid.
the concerned citizens can write to their representatives through http://www.house.gov/writerep/, or they can call (202) 224-3121.
Making access to college more accessible
According to the press release from Miller, he told the eligible students must be able to achieve a college education regardless of the cost of tuition. "The Democrats want to take America in a new direction, which includes reversing the Republican raid on student aid and making college more affordable for all students and families, "he said.
The statement said recent reports show that from 2001 to 2006 tuition, room and board, and fees at four-year public colleges and universities jumped 44 percent. Student debt in the last 10 years has increased by over 50 per cent, the U.S. Department of Education said.
Durbin expressed concern that the implementation of higher interest rates on student "deprives our children while threatening the ability of our country to remain competitive in the global marketplace. "
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About the Author
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.
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