01.16.07
An Amendment to H.R. 5
According to NCHELP’s newsletter, Howard “Buck” McKeon (R-CA), Ranking Republican member on the House Education and Labor Committee, sent a Dear Colleague Letter to fellow House Representatives inviting them to co-sponsor the College Affordability & Transparency Act that he introduced today as an amendment to H.R. 5.
The letter states:
“As the House prepares to consider legislation tomorrow to gradually reduce interest rates on some college loans – a move that won’t impact students, but rather college graduates – we are introducing a proactive set of reforms to make college more affordable for parents and students, as well as more cost-effective for taxpayers who foot the bill for the tens of billions of dollars spent each year on federal student aid programs.”
Specifically, the bill would:
- Establish a User-Friendly College Affordability Comparison;
- Create a Quality Efficiency Task Force;
- Free Selected Institutions from Costly Regulatory Requirements; and
- Identify Existing Best Practices on Affordability.
I”ll write more on this once I find out more.
Dale said,
March 14, 2007 at 5:11 pm
Most support the H.R. 5 bill without even fully understanding the bill and it’s additions (Sunshine Act & Star Act). Rightfully so, since its sugar coded with, “It’s going to lower your student loan interest rates”! Yes, loan rates will drop .68% every year for the next 5 yrs however, it’s not an instant drop and it’s ONLY on subsidized loans. Most student loan borrowers loans are unsubsidized loans, which will not be reduced at all. Also, subsidized loan rates will change right back to 6.80% once the 5yr term is over, just in time for those new graduates to become responsible for the interest on these loans. Hmm, sounds like the Govt is just giving themselves a break, not the students. Additionally, H.R. 5 and it’s additions will increase the fees to FFELP lenders which will force a lot of these lenders out of the student loan industry, minimizing borrowers choices and reducing incentives only FFELP lenders give to borrowers costing student loan borrowers THOUSANDS of dollars in interest. The GOVT is trying to monopolize the industry with this bill and it’s additions. THESE BILLS ARE BAD NEWS FOR STUDENT LOAN BORROWERS! If the Govt really wanted to help students they would put more money into grants and/or incentives to help lowering tuition charged by the colleges. I advise doing your online research, you’ll be shocked at all the hidden things these bills are going to do to student loan borrowers. If you do not support the H.R. 5 bill, Sunshine Act, or Star Act, I recommend contacting your states senator, contact info is available at: http://www.senate.gov/general/contact_information/senators_cfm.cfm. It takes less than 60 seconds to voice your opinion.