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.
The response from the community has been incredible. Our local leaders, our families, our friends, our neighbors; more than 80,000 concerned citizens want our Senators to understand the economic impact of these jobs and the valuable services we provide students and families every day.
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.
The President's plan, although touted as a means of promoting higher education, is not. The plan does not reduce the cost of student loans for a single student. Students and parents need to know that under this proposal, the government's profits on student loans borrowed by middle income students will be used to finance other student aid.
Related Laws and Rules
Evidence
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5 Myths About Student Loan Reform
Campus Progress: Almost all of the student loan industry's warning about SAFRA were wrong.
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Are Student Loan Companies Playing Politics With People’s Jobs
The definitive refutation of “job killer” cry wolf claims regarding SAFRA.
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.
