Senate Passes Bill Boosting Student Aid

(AP)  Congress sent President Bush legislation Friday to boost financial aid for college students by cutting some $20 billion in government subsidies to banks that make student loans.

Mr. Bush has indicated he will sign the legislation, despite previous objections to parts of the bill. Specifically, the administration has criticized a student loan interest-rate cut and a new loan-forgiveness program, among other things.

House Democrats had made the popular interest-rate cut a priority during the run-up to the last election in which they regained control of Congress.

The House voted 292-97 for the student aid bill Friday. Earlier in the day, the Senate approved the measure 79-12.

All the lawmakers who voted against the bill were Republicans.

The boost in financial aid to college students was one of half a dozen domestic priorities Democrats set when they took control of Congress this year. Two others - an increase in the minimum wage and mandatory air and sea cargo inspections - already have become law, and a third, ethics reform, is awaiting Mr. Bush's signature.

"This is an exciting day for parents and students who struggle to put together the financial means to pay for college," said Rep. George Miller, D-Calif., chair of the House education committee.

The bill would increase the maximum Pell grant, which goes to the poorest college students, from $4,310 a year to $5,400 a year by 2012.

It also would cut interest rates on federally-backed student loans to poor and middle-class students from 6.8 percent to 3.4 percent over the next four years.

California Rep. Buck McKeon, the leading Republican on the House education committee, criticized the rate cut. He said students will go back to paying the higher rate in four years or taxpayers will have to foot the bill for the cut to continue.

"What once was a campaign promise has become a trap that will ensnare either students or taxpayers," McKeon said.

Democratic lawmakers say the roughly $20 billion in cuts to banks are aimed at excessive government subsidies to lenders. The subsidies were established to ensure that banks enter and stay in the college loan business.

Banking industry officials have objected to the cuts and have said they could adversely affect services provided to borrowers.

Nearly all of the cuts would go toward making college cheaper, but $750 million would be spent on federal budget deficit reduction. The legislation is part of a must-pass bill needed to meet spending targets in the federal budget.

The bill also sets up a loan-forgiveness program for college graduates who work for 10 years in public service professions, such as teaching or nursing.

It also would cap annual payments for students at a percentage of their income, which lawmakers say would prevent people from having to pay back more than they can afford.

"Today, with this bill, we're sending a message, and that message is that no qualified student will be denied a college education because of cost," said Sen. Edward Kennedy, D-Mass., chairman of the Senate education committee.

Once signed by the president, the legislation will begin taking effect Oct. 1.

[missingamerica]

It is about time! Education is as much part of the infrastructure of a nation as highway bridges and sewage systems are.

Just because the Republicans would rather be the slumlords of America doesn''t mean it is the wise thing to do.

[Krazcarl]

murielcc think I have it right this time. The one thing I learned for myself in life is that education is the best investment you can make. Buttons was playing the pity game and nothing added up know a lot of older students playing early retirement with the loans and getting degrees they''ll never use changing majors. Looks like she''s failing at it. As I said you won''t get my pity BUT you do have my respect and I hope the very best for you sounds like you have a solid plan.

[murielcc]

At any rate, why bellyache when the congress is finally doing the job it was elected to do? Would you rather the money went on filling the pockets of bankers and lobbyists? It''s bad enough it''s currently financing army washers and screws with the price tags of mansions.

[Krazcarl]

Cas2dy. What are you on when they give you a student laon they make it clear there are 0 student grants were talking about loans not grants 2 totaly different things. Grants are a different issue the federal goverment does''t give grants take another hit and a nap.

[murielcc]

crzmeat, I''m in college (UC) in my second year of Masters, permanently disabled, and in no physical condition to take the punishing rhythm of pursuing a PhD to become a college professor. (TAship on top of studying is already exhausting enough; furthermore expecting a tenure track professorship when you start grad. school after 45 requires more blissful innocence than I have. I don''t know about button, but what I''m shooting for is p/t at a community college and for this, I''m not competitive without a Masters (plenty of younger applicants with the energy for a f/t assignment). I didn''t say a IV leagues doesn''t cost more than a state U: just that they offer so much more scholarships opportunities that the net difference is almost negligible when compared with the benefit on the student''s CV.

[Cas2dy]

Some are loans, others are grants. You do not have to pay back a grant. A good financial aid counselor will steer you in the right direction. Every academic institution has a Financial Aid office. Use it.

[Krazcarl]

muietic your wrong and you know it cruiser111 was a little harsh but true. If you think the cost tuition{?} is the same at a Ivy leuge and state your not in college or tapping out classes on line. A masters will only get you a pay boost when hired not special priviledges and not that awfull much, so many professional students these days now a PHD that would be different. If she''s on disability pell grants maxed student loans and can''t pay tuintion unless she has 4 tons of outside laons {car houses camps} she needs to get a job. I''m disabled and you''ll find no pity here.

[murielcc]

Dear cruiser111, your : "don''t confuse me w/facts I''ve already made up my mind" would be funny if it weren''t tragic. A disabled, middle age person cannot work full time as a teacher and to get a part time position you''ve got to be marketable. ie: the masters is a must not a fancy paper on the wall. I know: I''m in exactly the same situation as Buttons. Oh, and FYI I''m in a State College: have you checked the tuition before telling rwrager his kids are selfish snobs? It isn''t that much lower than the somewhat prestigious colleges his kids have picked and the grants and scholarships gotten are proportional to where you go: so the final effect is ~ $0 difference.

[Krazcarl]

Ahhh the old student laon trap these aren''t grants there low interest loans that have to be paid back you can''t go bankrupt on them they will pull any tax refunds coming your way for the cash ruin your credit seen lots of folks in this deep well. See it''s cash that you spend any way you want to. Most this money goes to personal expences got me a nice music system young wanted to be cool. I know folks start there new career tens of thousands in loans one budy was at 33.000.00 and not out of school going to be a teacher. There so easy to get if your maxed out with bills the money isn''t going to school. I think anyone that maintains a decent grade average ought to be eligible for 4 years college or 2 years tech but I''m a boderline sociallist it won''t happen.

[cruiser111-2009]

buttons, a BA or BS in education is sufficient to become a teacher. Getting your masters is simply your decision to get a higher level degree. You people caan''t see the forest for all the *** trees in the way.