Student Loans

Student Loans

College costs are growing rapidly and financial aid hasn’t kept up. Close to 70 percent of undergrads graduate with debt. In 2009, the average student borrower owed $27,600.  The Student Aid and Fiscal Responsibility Act (SAFRA) of 2010 ensures that all federally funded student loans will be directed through the federal government’s Direct Loan Program (DLP,) saving $61 billion and using that money to fund increased Pell Grant funding.  SAFRA abolished the Federal Education Loan Program (FFELP), which used subsidized loan companies to provide student loans. 

Cry Wolf Quotes

Gone will be the days when students and their colleges picked the lender that best fit their needs; instead, a federal bureaucrat will make that choice for every student in America based on still-unclear guidelines.

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Senator Lamar Alexander (R-TN) published this anti-SAFRA op-ed in The Washington Post.

The good work Sallie Mae does to support millions of students and families across the country is also felt right here in Pennsylvania. The company has been part of this community for more than two decades and we need them to continue to provide employment opportunities in Northeastern Pennsylvania.

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Todd Vonderheid, President of the Wilkes-Barre Chamber of Business and Industry

Finally, the government should disclose that getting your student loan will become about as enjoyable as going to the Department of Motor Vehicles.

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Senator Lamar Alexander (R-TN) published this anti-SAFRA op-ed in The Washington Post.

The furor over President Obama's trillion-dollar restructuring of American health care has left his other trillion-dollar plan starved for attention. That's how much the federal balance sheet will expand over the next decade if Mr. Obama can convince Congress to approve his pending takeover of the student-loan market.

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From the Wall Street Journal's anti-SAFRA op-ed "The Quietest Trillion".

Evidence

Resources

Campus Progress is the youth wing of the Center for American Progress. They do work in both advocacy and journalism.

Higher Education Watch is the New America Foundation's blog about the politics and policy of higher education.