Generation Debt

This is a press release on hr 4283 which appears to be the resolution that s going to be passed by congress. My big question is how come congress never states the huge susidies are going to the lenders: they always say it's the students....It's the banks that are making a KILLING! Bill

McKeon

Contact: Vartan Djihanian (202) 225-1956

House GOP Education Leaders Unveil Bill to Expand College Access for Low & Middle-Income Students

Washington, May 6 -

House Education & the Workforce Committee Chairman John Boehner (R-OH) and 21st Century Competitiveness Subcommittee Chairman Howard P. ìBuckî McKeon (R-CA) late last night introduced the College Access & Opportunity Act, legislation that will expand access to higher education for millions of low and middle-income students. The bill will reauthorize the remaining portions of the Higher Education Act (HEA), including Title IV, which deals with student aid. The House has already passed bills reauthorizing several other portions of the Higher Education Act.

The College Access & Opportunity Act will expand access to higher education for millions of low and middle-income students by:

Strengthening Pell Grants, student aid, student access, and minority serving institutions.

Reducing loan costs, fees, and red tape for students and graduates.

Removing barriers for non-traditional students.

Empowering consumers through ìsunshineî and transparency in college costs & accreditation.

ìMillions of low and middle-income students today face the possibility of being denied access to a higher education. These students and their families should be first in line when federal higher education aid is increased,î said Boehner. ìThe College Access & Opportunity Act is fiscally responsible legislation that will restore fairness and expand access for incoming, low and middle-income students ñ the very students the Higher Education Act was created to serve.î

ìI am very proud to join Chairman Boehner in the introduction of this important piece of legislation,î said McKeon. ìFor almost a year, my colleagues and I have been working diligently to put forth a reauthorization package that increases college access for millions of low and middle income students, and this bill achieves just that.

ìI am particularly pleased with the provisions that address the skyrocketing cost of college tuition by empowering parents and students with clear and understandable information about the college marketplace so the mystery behind higher education financing can finally be eliminated,î McKeon continued. ìAlthough the college cost crisis is far from over, this bill makes tremendous progress so that more students can fulfill their dream of a higher education and can successfully achieve their full potential in life.î

Boehner and McKeon have noted surveys showing an overwhelming majority of Americans believe future increases in federal higher education aid should go to expanding help for current and future college students, rather than continued subsidies to graduates in the workforce, such as borrowers repaying their loans.

If current programs remain on autopilot, the opposite is likely to happen, Republicans note. The independent General Accounting Office (GAO) has warned the cost of the federal loan consolidation program ñ which provides billions in subsidies to higher income individuals who are no longer students ñ will explode over the next several years. Billions that should be used to expand access for students will instead be used for subsidies to non-students. GAO has urged Congress to switch the program from a fixed-rate structure to a variable-rate structure before this occurs. Experts say making all consolidation loans variable rate will free up $21 billion over the next seven years that can be used to expand access for incoming, low and middle-income students in danger of being denied a college education.

The College Access & Opportunity Act also addresses growing concerns that excessive lender earnings, fueled in part by provisions in current law promoted by the Clinton administration, are diverting money away from the students who are priority number one in the federal student aid programs. The bill addresses these concerns, reforming these provisions and requiring lenders to return excess income to the federal government, freeing up resources that can be used to expand access to current and future students.

The bill includes numerous student-focused reforms such as steps to strengthen Pell Grants and student aid programs while reducing red tape and eliminating outdated barriers to college access. It will also strengthen Minority Serving Institutions and ensure all eligible colleges and universities are able to compete on a level playing field for funds that will allow them to better serve their students.

The College Access & Opportunity Act will expand access for current and future students by increasing loan limits, reducing loan fees, repealing anti-consumer restrictions for borrowers seeking to consolidate their loans, and ensuring all federal student loans are provided under the current, successful variable rate structure that has resulted in the lowest interest rates in the history of these programs.

A comprehensive summary of the College Access & Opportunity Act is attached. For more information on Republican efforts to expand college access for low and middle-income students, and for access to a copy of the College Access & Opportunity Act, see http://edworkforce.house.gov/issues/108th/education/highereducation/highereducation.htm

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mckeon.house.gov