House Proposes Fair Loan Payments in HEA
The leadership of the U.S. Education and Labor committee introduced legislation today to amend the Higher Education Act, the law that governs federal student aid programs. The bill, scheduled for mark-up tomorrow, would achieve many of the goals of our Plan for Fair Loan Payments by creating a new Income-Based Repayment plan.
In a statement released today, Bob Shireman said this is “a key moment in the fight to reform our student loan system, and a major opportunity to reduce the hazards of student debt. Passage of these amendments to the Higher Education Act would be good for students, borrowers, and everyone concerned about rising student debt. We urge the House to pass a strong bill, and the Senate to follow suit.”
Progress on Private Loans
After a hearing last week in the Senate Banking Committee on private student loans, senators are acting quickly to create new protections for private loan borrowers. Sen. Richard Durbin (D-IL) has introduced legislation to make private loans dischargeable in bankruptcy. Sen. Christopher Dodd (D-CT) plans to introduce a broad bill that would regulate disclosure, transparency, and marketing tactics for private loans. In addition, other senators have plans in the works that will be announced soon.
College Counselors Surveyed on Student Debt
Results from a national survey co-sponsored by the National Association for College Admission Counseling (NACAC) and the Project on Student Debt show that high school counselors see worries about borrowing affecting families’ decisions about college. Counselors themselves are also concerned about rising student debt.
(This announcement was sent to the Project on Student Debt mailing list on June 12, 2007.)