Sunday, September 20, 2009
Good News for UA Students!
The House of Representatives last week passed H. R. 3221, a student loan reform bill that would simplify the federally guaranteed student loan system, save an estimated $87 billion over 10 years and use that money saved to increase financial aid to low-income students, improve community colleges, and raise standards for early childhood education. There's already another recent law that forgives part or all of the debt for college graduates who go into careers in public service.
The new legislation is rather simple and makes lots of sense, even though the bankers and their loyal stooges in Congress don't like it. If this becomes law, no longer will the federal government be doling out the funds to private banks holding toxic assets and giving big bonuses to executives who made bad decisions. The new Stafford and Perkins Direct Loans cut out the middleman and the guaranteed profits to banks and, instead, get the money directly to students at 5% interest. The bill also expands and authorizes full funding for direct Pell Grants to students.
The bill passed by a vote of 253-171. Congressman John Boozman (R-Arvest) voted against it.