Rise in student debt is driving action on the Hill
Tuesday's 95-to-0 Senate vote boosts financial aid for poor families.
from the July 26, 2007 edition
Page 3 of 3
But some of the compromises received praise. Sen. Susan Collins (R) of Maine says that the reauthorization "brings back a balance between [lender] subsidies and financial aid," taking some funds away from lenders but not cutting them out completely from the system. Private lenders, she says, "are healthy for the marketplace."
Many higher-education advocacy groups involved in the debates over the HEA support the reauthorization overall, but they have concerns over individual provisions.
For instance, a new requirement for colleges to release data on completion rates broken down by race, ethnicity, and gender could "be used to make invidious comparisons about how colleges are performing," says Mr. Baime.
The reauthorization bill's focus on making small changes in existing programs – unlike the reconciliation bill, which represents a dramatic shift in federal policy regarding the lender industry – also weakens its ability to produce major changes to the status quo, according to Mr. Nassirian. "It isn't like it collapses programs or takes massive steps towards simplification" of the financial-aid system.
But this approach also has supporters. Mr. Hartle argues that current programs already work and just need to be tightened and expanded.
Senate bolsters student aid
In the past week, the Senate passed two bills that:
1. Simplify the federal financial aid application form.
2. Cap monthly repayments of federal loan debt for low-income borrowers.
3. Bar student loan companies from giving gifts or perks to college officials.
4. Cut government subsidies to loan companies, redirecting the funds to federal grants for low-income students.
Source: News reports
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