Strengthening the Perkins
Loan Program
President Obama's budget proposes expanding and redesigning
the Perkins Loan Program, a low-cost federal loan option available to some
students through their colleges. Congress will play a significant role in
shaping the new Perkins program, as students and families worry more than ever
about how pay for college and student debt levels continue to rise. Our new
white paper, Reasons & Recommendations
for Retooling the Perkins Loan Program, analyzes the current program and
includes specific suggestions for increasing its impact on college
affordability and student success.
Read the white
paper
Recent Negotiated Rulemaking to Improve Financial Aid
Policies
The U.S. Department of Education recently initiated a
negotiated rulemaking process to address a variety of financial aid issues.
The process began with three hearings in June, paired with open forums about
ways the Department's communications about financial aid could "improve college
planning, preparation, and access." Members of our staff attended the Philadelphia events and
presented the following comments:
Negotiated Rulemaking
Comments on Title IV Programs
Federal Public Forum
Comments on Financial Aid Communications
There's Still Time to Take Action for Real Loan
Forgiveness!
In addition to lowering monthly student loan payments, the
Income-Based Repayment program forgives any remaining debt -- including interest -- after 25
years. Most borrowers will pay off their debt before then, but under current
law, if there's anything left to forgive after 25 years, the amount forgiven
would be taxed as income to the borrower.
A bipartisan bill in the U.S. House of Representatives,
H.R.2492, would prevent the taxation of debt forgiven through Income-Based Repayment. Loan
forgiveness is supposed to wipe the slate clean for responsible borrowers, not
create a new financial obligation.
If you haven't already, please take a moment to write to
your representative and urge them to support H.R. 2492 and ensure there's
really a light at the end of the tunnel.
Take action!
(This message was sent to the Project on Student Debt mailing list on July 10, 2009.)
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