Ambitious Agenda, Ticking Clock: Interest Groups, Students Have Lengthy Wish List, but Congress May Not Tackle Everything This Fall

By Dervarics, Charles | Diverse Issues in Higher Education, September 6, 2007 | Go to article overview

Ambitious Agenda, Ticking Clock: Interest Groups, Students Have Lengthy Wish List, but Congress May Not Tackle Everything This Fall


Dervarics, Charles, Diverse Issues in Higher Education


With lenders and low-income students jockeying for position, Congress returns from summer recess this month with ambitious plans--but little time--to enact some of the most far-reaching student aid policy changes in a generation.

Topping the agenda is a 2008 budget bill that would take billions in subsidies to student loan providers and re-direct the money as aid to needy students. The White House has threatened to veto one version of this all-encompassing budget bill, while lawmakers in both chambers still must reconcile competing House and Senate proposals.

Elsewhere, long-time Capitol Hill watchers also predict protracted discussions on a 2008 education funding bill for hundreds of U.S. Education Department programs, while several groups want action on legislation to help immigrant children better afford college.

Add in the prospect of another bitter debate over the Iraq war, and the congressional plate is clearly full. "With the Iraq debate, there's not a whole lot of time," says Barmak Nassirian, the associate executive director of the American Association of Collegiate Registrars and Admissions Officers. Here is a brief outlook at some of the key higher education topics up for discussion:

Pell Grants: With proceeds from lender cuts, the Senate reconciliation bill would increase the top grant to $5,400 by 2011. The House bill is close behind at $5,200. Regardless of the outcome of that discussion, Congress must set the maximum grant for 2008. A House education spending bill recommends a top grant of $4,700 next year, while the Senate is recommending at least $4,600.

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Interest rate cuts: The House has already passed a budget bill that would cut interest rates in half on federally subsidized loans to needy students, but the Senate has yet to act. The bill would also raise lending limits so fewer students with additional financial need have to turn to costlier private loans. But House critics say budget savings should go to current students, not to graduates paying back their loans after they leave school.

Such criticism doesn't sit well with student groups, however. "Students and borrowers don't just need support as freshmen and sophomores. They need support on the back end, too," Rebecca Thompson, the legislative director for the United States Student Association, says. Student loan debt affects career choices and plans for graduate school, among other issues, she says. …

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