Generation Debt

Ranking Democrat in the Committee on Education & The Workforce, George Miller, has released his statement on the Republican sponsored College Access and Opportunity Act (H.R. 4283).

His comments include:

It is imperative that we return to the original premise of the Higher Education Act of 1965–that no college-qualified student should be denied a college education because he or she is lacks the financial resources.

Unfortunately, while the bill before us today includes some good provisions ñ such as reducing student origination fees and reducing some of the excessive subsidies to banks ñ overall it actually makes college more expensive and reduces college opportunities.

...

Despite the fact that an estimated 40 percent of all borrowers graduate with unmanageable debt levels, the Republican bill denies studentsí ability to lock in a low fixed interest rate on their student loans through consolidation. Consolidating at a low fixed rate has helped millions of low and middle-income students manage their debt and make ends meet.

According to an analysis by the Congressional Research Service, eliminating this benefit will force the typical student borrower to pay $5,500 more for his or her student loans.

Without having gone through the entire 203 pg bill (!!) yet... it doesn't appear that this new legislation will fix the current one-time consolidation rule but in fact eliminate the option of consolidation for future students.