A national study of student financial aid found that in 2008, two-thirds of college seniors graduated with debt averaging more than $23,000. A student loan reform bill Congress is expected to consider in the coming days would help address this, by ending wasteful subsidies to banks in the federal student loan programs and use the savings – about $68 billion according to CBO – to boost Pell Grants and help low- and middle-income students pay for college.
Over the past year of public debate, we’ve heard a lot about what banks think of these reforms. But what about students? They can’t afford powerful PR firms and lobbyists – but there’s a reason students across the country are calling for Congress to pass the bill.
Over the past year of public debate, we’ve heard a lot about what banks think of these reforms. But what about students? They can’t afford powerful PR firms and lobbyists – but there’s a reason students across the country are calling for Congress to pass the bill.
What Students Are Saying
United States Student Association: “Students overwhelmingly support the proposal. So while students invest what little time and resources they have in passing real reform, big banks are pouring millions of dollars into obstructionist lobbying tactics aimed at maintaining a status quo that perpetuates a lending system that has led to the greatest amount of student debt in history. These tactics may have swayed legislators from states with big lending influences, but students have not been fooled.” [Op-Ed: “A New Kind of March Madness,” The Hill, 3/16/10]
Princeton University: “The chief argument in favor of SAFRA is straightforward… Especially in the current economic climate, funds for student aid should be used in as efficient a manner as possible. The redistribution of funds from FFELP to Direct Loans and Pell Grants clearly accomplishes this.” [The Daily Princetonian, 2/17/10]
The University of California, Berkeley: “Cutting out the middle man, in this case the banking industry, could help make a particularly bloated industry more efficient and, along the way, save students and taxpayers some change.” [The Daily Californian, 2/9/10]
University of South Alabama: “Fortunately there’s some long overdue legislation that seeks to alleviate college affordability concerns, easily the most stressful and uncertain element in the pursuit of higher education. In September, the House passed the Student Aid and Fiscal Responsibility Act, which would provide student loan reform for millions of college students.” [The Vanguard, 2/15/10]
The University of Iowa: “If you’re looking for an above-average job, a high-school diploma is not likely to be sufficient. And a college degree is becoming more expensive by the year. But Obama’s proposals, if adopted, would make college degrees a bit more practical for high-school grads.” [The Daily Iowan, 2/4/10]
New York University: “Why is this legislation so vital? Basically, it cuts out the middleman, saves taxpayer money, and most importantly, it allows more money to go towards Pell grants and affordable loans that would cut away at some of the massive debt faced by so many college graduates.” [NYU Local, 2/5/10]
The University of Maine: “We applaud the representatives who passed what amounts to the largest higher education aid reform bill of our lives.” [Maine Campus, 9/21/10]
What Educators and Advocates Are Saying
College Board: “For the nation to remain competitive globally, and for all citizens to have the ability to achieve the American dream, our education system will need to produce greater numbers of students who earn postsecondary credentials, especially students from groups who have been traditionally underrepresented in higher education” [College Board Letter to Chairman Miller, 7/20/10]
The Hispanic Association of Colleges and Universities: “We are particularly pleased to support the planned increases in the Pell Grant Program, including the assurances of increases to meet the growing cost of living. The Pell program is the single most important program to allow low-income students the opportunity to pursue higher education." [Hispanic Association of Colleges and Universities Letter to Chairman Miller, 7/20/10]
Campaign for College Affordability: “Millions of students and their families stand to benefit from a number of the provisions in this legislation.” [Campaign for College Affordability Letter to The Education and Labor Committee, 7/21/10
NAACP: “We adamantly support proposals for student aid reform that include tens of billions in increased Pell grant funding. The Pell grant program, established in the early 1970s to ensure that no qualified student was turned away from college due to cost, now helps over 7 million college students, a large portion of whom are first generation, non-traditional and students of color.” [NAACP Letter of Support, 7/20/10]
