Bush Signs Sweeping Student Loan Bill Into Law, Adding an Asterisk

Source: Washington Post


By Ian Shapira
Washington Post Staff Writer
Friday, September 28, 2007; Page A06

President Bush signed into law yesterday a student loan bill that will provide more than $20 billion in federal aid to college students and is being likened to the G.I. Bill, which helped millions of World War II veterans attend college.

The law, which received overwhelming bipartisan support in Congress, will slash federal subsidies to private loan companies and increase grants for students. It will gradually reduce interest rates on federally subsidized loans for low-income students to 3.4 percent over five years. The law will also offer loan forgiveness for those who have held public service jobs for 10 years and will cap payments on federal loans at a certain percentage of a college graduate's income.

The new law, the College Cost Reduction and Access Act, overhauls the nation's student loan system. Recent investigations have revealed how lenders have showered university officials with gifts to woo student borrowers and drive up profits. Congress reacted sharply to the disclosures, and the support to revamp the student loan industry was considered a rare bipartisan endeavor.

The House of Representatives approved the law 292 to 97; the Senate vote was 79 to 12. Only Republicans voted against it....

But as Bush signed the bill, he suggested that it is not perfect. "This bill makes some spending commitments that aren't paid for yet, and I look forward to working with the Congress to ensure Pell Grant increases that are not fully funded in this bill are paid for with offsets in other areas."...

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2007/09/27/AR2007092700958.html?nav=most_emailed

How can that man look at himself in the mirror everyday. It was his decision to invade Iraq resulting in the deaths of nearly 1 million people, displacing 2 million, not to mention the years of devastation brought upon that country as a result of the destruction of infrastructure.

Astounding. Since the Dems can't seem to stop the man, can we move the elections up?

WTF are we giving THEM money for? So they can charge these kids more on OUR dime? WTF???? :grr:

And fewer people able to afford college as a result. Unless of course we expand federal student loans well beyond the groups eligible now to include middle class and even higher because college is so very expensive. I am in favor of that, actually. Well, really I want higher education at state schools to be free of charge for anyone who wants to go but that will never happen here.

I don't buy that argument at all, that there will be less loans.

There will be less loan companies getting WELFARE from the government in order to write loans to students. BFD. Chase et al doesn't NEED the money.

Alaska has a state run student loan agency that makes money. It sells tax-free bonds at a low interest rate to finance the loans, and in order to make sure that schools in rural areas get enough teachers, will forgive half the loan if recipients teach in Bush schools for five years. It works very well.

Originally, the loan program forgave half the loan if you worked in Alaska for ten years after graduation, which I did, and all of it if you taught in the Bush for five. I would not have returned to college in my late 30s if the loans had not been available, and the interest so low.

This year alone. Gosh where could we get the money?

or is this only for new loans?

My daughter just started at UCLA. "Cheap state university" running $23,000 a year + books($100-150 per class) + supplies.

No student loan available for her, we qualify for Parent PLUS loan, with interest 1-1.5% higher than I would pay for Home Equity line.

When is "affordable" education coming back??

BTW, Dorms charging about $10,000 a year for a triple (with food). This can't be "costs". I hear they are making a FORTUNE on these rooms, which were long ago PAID FOR by CALIFORNIA TAXPAYERS.

so colleges raise tuition/fees. It costs more, so students either can't afford it, or have to take out massive loans for an undergraduate education. Who wins here? The loan sharks. Oh, and federal "loans" keep you in debt to your own government for a number of years, while everyone pays taxes so the Repugs can spend us into oblivion. Corporate/banking welfare is alive and well.

But Congress could get part of it by taking away his pension: impeachment would be nice, too. ;-)

...I can think of a way to fund this and many other needed measures.