The Campaign for Student Loan Reform is calling upon Senators to support the bipartisan amendment proposed by Senator Ben Nelson (D-NE) and Senator Richard Burr (R-NC) to the budget reconciliation bill (S. 1762).
They state that this amendment would make sure that families will not have to pay more for higher education and also would make the necessary resources available for the Government to be able to fund increases in Pell Grants and also make sure that the lenders would have the ability to continue to provide the current discounts on the interest rate.
The Campaign warned that without the amendment to the bill, it would result in changes and taxes that would have the effect of eliminating the existing discounts. They give the example of a graduate student having to $38,000 additional interest in a $60,000 loan. Those with the highest debt levels would be the hardest hit by the loss of the current interest rate discounts.
Even if the bill does pass the Senate, it is still a long way from becoming law. It would have to go to the House of Representatives, be ratified there and then go on to the President to be signed into law or vetoed. If the House were to amend the bill, it would go back to the Senate once again.
They criticized the Senate for pushing the bill through Congress without taking the time to analyze the full impact of the bill. The Bush Administration has many objections to the bill referring in particular to what they call complicated lender financing issues that could have what they call
The administration has raised numerous objections to the bill including “complicated issues” on lender financing that could have “unintended consequences” and to parts of the bill that they say would “reduce choices for students and parents and involve enormous implementation issues that threaten to disrupt services and limit loan availability.”
There is another bill coming up for debate that the Campaign wants to draw attention to and that is the Higher Education Act Re-authorization Bill. They strongly support the bill for its strong ethics reform proposals regarding student lending that include more flexible repayment options and better disclosure.
The Campaign to Reform Student Loans is a collective voice of organizations, families, and students, whose goal is to call on lawmakers and ask them to take a common sense, bipartisan approaches when working on issues involving reforming student loan programs. They believe that Congress must take the course of enhancing competition and choices for education financing and at the same time demand the strongest ethical standards and ensure that college is made affordable for low-income and middle-class families. After all these incidents, you can see a personal loan can be a great tool to help pay down large expenses and you can use that to pay off your student loan or use that to make yourself financially stable.