Monthly archive February, 2006
While most college students were on winter breaks, the US Senate was debating over a drastic reduction in student loan opportunities. On December 21, 2005 in a 51-50 vote the US Senate passed a bill which included $12 billion in student loan cuts from the federal budget. Vice President Cheney cast the tie-breaking vote, while five Republicans sided with the Democrats who unanimously opposed the bill. A second blow was wielded this week when the House passed a bill also in favor of the student loan cuts. While 13 moderate Republicans joined House Democrats in a no vote, not enough opposition was gained and the bill passed 216 to 214. The drastic measure eliminates $2.2 billion in critical funds used to administer the federal student loan programs. Additional changes included a new 1% insurance fee that student borrowers must pay to guarantee agencies and raising the interest rate cap for parents who take out federal education loans for their children from 7.9 percent to 8.5 percent. The bill outlines a total of $39 billion in budget cuts which besides the student loan cuts, drastically reduces Medicaid and Medicare programs for low income and senior Americans. “The President spoke last night [...]

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Categories: General