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September 28, 2007

College-cost struggles

Article Last Updated: 09/28/2007 11:56:52 AM EDT

College students and their parents yesterday scored a major victory against overwhelming debt and unfair student-loan practices, but -- make no mistake -- the battle must continue.

President Bush signed legislation designed to make college more affordable for poor and middle-class students. The president had some concerns with the legislation, but knew it had veto-proof majorities in Congress.

The legislation increases the maximum Pell grant from $4,310 a year to $5,400 a year by 2012. It also reduces the interest rates on federally backed student loans from 6.8 percent to 3.4 percent over the next four years. These measures will result in significant, and much-needed, savings for students and their families.

It also includes increased flexibility on college-loan payments for military personnel on active duty. Public-service workers, such as nurses, firefighters and police officers, will receive loan forgiveness after 10 years of service and loan payments. This will allow students to consider lower-paying fields despite having to finance their post-secondary education.
This is all very positive news, but the battle against overwhelming student debt must continue, as the House is now considering legislation to protect students against shady marketing practices in the student-loan business.

Sen. Edward Kennedy, D-Massachusetts, has successfully steered the measure through the Senate after releasing an alarming report on the student-loan industry. The report showed that some lending institutions provided donations, services and other benefits to colleges in exchange for preferential treatment in regard to student loans. In some cases, students and parents were getting financial aid advice that was biased and not to their benefit.

This far-too-common practice is unconscionable and must be stopped. Financial aid officers should be offering struggling parents and students the best deal possible for their families, not for universities and lending institutions.

We applaud the progress made thus far in the battle against staggering college costs, and urge the House to support the higher-education bill that will further assist low- and middle-income students and their families.

Posted by Admin at September 28, 2007 4:13 PM