FOR IMMEDIATE RELEASE 
November 3, 2005
Contact:  Rachel Kleinman
(202) 225-3772
 

Berry, Snyder, Ross Oppose Largets Cuts to Federal Student Aid Programs in History 
$14.3 Billion in Cuts Raises Taxes, Interest Rates on Student loans
 
(Washington, D.C.)  After the U.S. House Education and Workforce Committee approved the largest cuts to student aid programs in history, U.S. Representatives Vic Snyder (AR-02), Marion Berry (AR-01), and Mike Ross (AR-04) sent a letter to House Leadership requesting immediate reconsideration of the proposed cuts. The proposal would eliminate $14.3 billion from student aid programs over five years.

The committee found $14.3 billion in cuts by proposing to raise student loan interest rate caps, taxes on student loans, interest rates on consolidation loans, and reduce subsidies to student lenders. These cuts would force the typical student with a $17,500 college loan to pay about $5,800 more, and would likely deter many individuals from seeking higher education. In Arkansas, these changes would impact as many as 58,768 individuals who have a pending student loan.

“Investing in our young people is important,” said Congressman Vic Snyder. “As tuition and student debt continue to rise, Congress should be helping make a college degree more affordable, not more difficult to achieve. Together, America can do better for our students.”

“While I understand the need to get our fiscal house in order, I cannot support a proposal that makes cuts to critical programs while also extending tax cuts for the wealthiest Americans" said Congressman Berry. "I see no reason to make students pay the price so millionaires can have an extra couple of dollars in their pocket. This budget reconciliation process is nothing more than a front to pull the rug out from under hard-working Americans."

“This year’s budget includes over $70 billion in tax cuts,” said Congressman Ross. “It’s about priorities.  Tax cuts are being provided for the wealthy while important programs that directly impact the poor, the disabled, and the elderly are being slashed.  We should not be asking America’s students to sacrifice their future in order to offset today’s tax cuts for the wealthy.”


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