Final Result: Students Over Banks!
We did it! Young people across America, working with USSA, PIRGs, Campus Progress, and others, stood up to a fierce lobbying campaign by big banks and fought for financial aid reform. And Congress, at last, prioritized students over banks. We are grateful for the leadership of Speaker Nancy Pelosi, Leader Harry Reid, Chairman George Miller, Senator Tom Harkin, and others for championing these important changes. College will be more affordable, thanks to them – and to you.
Increase Grants for Students
The Pell Grant, a federal grant for students with the most financial need, covered 72% of the average cost of attending a public four year college in 1976, but only 32% of this cost in 2008. Why? Because college costs have risen without Pell Grants increasing comparatively. President Obama’s plan will not only make Pell Grants more available, it will make Pell more reliable and able to keep up with college costs.
Fight Corruption
The guaranteed loan program (FFELP) has been plagued by scandal over the past two decades, with some lenders giving college financial aid officers improper inducements like paid junkets -- and, in extreme cases, even stock options -- while trying to convince them to recommend their loan companies to students. While some claim this is the work of a few bad apples, the system itself is inherently prone to waste, fraud, and abuse.
End Handouts to Banks
According to the non-partisan Congressional Budget Office, reforming the student loan programs will save tax payers $87 billion over ten years. With that much money, you could buy 3,101 trips to space – or help make college more affordable for millions of young people.
Strengthen Our Future
The U.S. is falling behind in education. Those aged 35-54 rank second worldwide in percentage of college graduates and those 25-34 now rank 10th. Where will the next generation fall? In his address to congress in February, the President made a commitment to restoring America’s place as the global leader in higher education by 2020. His plan for reforming higher education is a critical step towards making this goal a reality.
RECENT VIDEOS
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News
STATEMENT: Young People Win on Student Loan and Health Care Reform
Posted on 26 March 2010
Today Congress took action to eliminate an inefficient and corrupt student loan system and finally put the interests of students over banks. Young people overwhelmingly support health care and student aid reform, and are heartened to see that the change they voted for has become a reality. Continue Reading
News
Making College More Affordable, More Diverse
Posted on 26 March 2010
Health care isn’t the only reform through Congress this week—young people got a leg up, too, with measures to make college more affordable. Continue Reading
News
Who Lobbied Against Student Loan Reform?
Posted on 25 March 2010
Kevin Connor (of littlesis.org) has done some great work recently about the multi-million dollar student loan company campaign to protect their subsidies at the expense of middle and low income students. He not only uncovered how much they have spent (which Campus Progress looked into as well), but also how they went about influencing particular members of Congress. Continue Reading
News
CNN Poll Finds Broad Support for Student Loan Reform
Posted on 25 March 2010
CNN released a poll today that found that 64% of Americans support student loan reform, while only 34% oppose it: “Many Americans may not know that a major change to the federal student loan program is part of the health care legislation moving through Congress, but those changes appear to be generally popular,” says CNN Polling [...] Continue Reading
News
5 Myths About Student Loan Reform: What the Student Loan Lobby Doesn’t Want You to Know
Posted on 25 March 2010
For the past year, student loan company lobbyists and their allies have spread myths intended to kill common sense student financial aid reform and maintain a system of taxpayer handouts at the expense of students and families. With Congress facing critical votes on the reconciliation bill this week, the misleading messaging campaign has gone [...] Continue Reading
Resources
By the Numbers: Student Loan Company Lobbying
Posted on 23 March 2010
The student lending industry spent at least $62,567,134 lobbying Congress since 1999. If, as an industry, they decided to help students instead of lobbying (usually against their interests), they could have forgiven the loans of 2,696 borrowers (at the average level for 2008 graduates), provided grants of equal size to the 2009-2010 maximum Pell grant to 11,694 students... Continue Reading
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