Student financial aid bill would cut loan rates in half
Hatch thinks bill is partisan Demo ploy
The timing and broad goals of the legislation, however, have some Utah education and political leaders worried it may just be partisan tricks rather than any true attempt to save students money.
"This is a blatantly political bill. There's no possibility that both Houses of Congress and the president could act on this before tomorrow, and the sponsors know it," Sen. Orrin Hatch, R-Utah, said Thursday.
Students nationwide are facing a nearly 2 percent interest hike on student loans Saturday, a deadline that likely prompted the bill, said David Feitz, executive director of the Utah Higher Education Assistance Authority.
"It's interesting that right before that deadline . . . here comes this bill. It's already sort of received with that political stain on it," Feitz said.
The Student Debt Relief Act, introduced this week by Sen. Ted Kennedy, D-Mass., aims to cut student loan rates in half reducing Stafford loan interest rates on new loans from the new 6.8 percent rate to 3.4 percent.
The bill would also increase the maximum amount of federal Pell Grants for each student from $4,050 to $5,100.
"Families across the country are pinching pennies so they can afford to send their children to college," Kennedy said in a news release. "The federal government needs to do more to help families."
In a 70-page report released by the Democratic sponsors of the bill, the savings to students are broken down by state. In Utah, the plan could bring savings for Utah students up to $2,200 on a 10-year loan, plus an average increase of about $600 per Pell Grant for Utah students, the report states.
Feitz and Hatch, however, aren't so sure the legislation can make good on those promises. While state education leaders have advocated for more federal aid, they're not certain where the money will come from to fund larger Pell Grants.
"Look, I wish we could offer students lower rates or even interest-free loans but our budget won't allow it," Hatch said. "And anytime Senators Kennedy, Schumer, and Clinton are on the same bill, Americans should grab their pocketbooks and hide."
Although Kennedy's plan includes a switch to a direct loan program to save money, Feitz said he disagrees that change from the current system will actually save money.
"They sound really good on the surface, but the question is how do you pay for those proposals when the country is at war and there's a looming budget crisis?" he said. "Can you do this in a way that isn't so political that it's just dead on arrival?"
Comments
- Man faces 4 counts of child sex abuse 8:07 p.m.
- Odd Fellows Hall move 6:13 p.m.
- Man charged in child sexual assault 5:43 p.m.
- Jazz in back of line for free agents 5:36 p.m.
- Dining out: Ruth's Diner 5:04 p.m.
- Tactfully bring up plastic surgery 5:04 p.m.
- Malden's craft made good movies 5:04 p.m.
- Megan Joy looks forward to Utah 5:04 p.m.
- Box office 5:04 p.m.
- Movie listings 5:04 p.m.
- Blazers may offer Millsap a contract
- Utah's top 10: Wealth of recreation
- Restaurant burns in 3-alarm fire
- MWC, WAC rushed into BCS
- O'Connor unhappy Fes not with team
- Send Boozer to the Bulls?
- Keeping golf light on the wallet
- Teen injured in fall from waterfall
- Fatigued Jazz no match for Pacers
- River flow marks birth of sanctuary
- Bronco collecting a galaxy of recruits
138 - Letters: Palin mistreated
136 - Teachers struggle with district cuts
134 - Blazers may offer Millsap a contract
118 - 'Tea party' protesters unhappy
107 - Fairness of BCS debated
81 - Stadium of Fire lights up the 4th
79 - Chaffetz eyes challenging Bennett
72 - Millsap not franchise player
70 - Services bids farewell to Jackson
70
Through the years, I've always raised eyebrows whenever I tell people...
The recent Poly camp in Bountiful opened the eyes of recruiters to at...
Lute | 4:48 p.m. July 9, 2009 I am glad you took notice again. I am a...
They served decent food but now they can rebuild and it will automatically be...
"Sounds like a good idea, wonder why they wouldn't do it." Er...ah......
Why not just tactfully say, "Edna, you don't look a day over 85."? Edna...
koc must do this trade
"More greed for more entitlements!" It was conservatives believing war was an...
If you support these criminals, you also support burglars, child molesters,...
Perhaps you could have said "why Marylyn, the unnatural stretching of skin...
Anonymous | 11:48 a.m You can't always wait for government. Sometimes you...
Problem is: Jazz dont learn! They will repeat the same mistake time after...


You can be the first to comment on this story.