- The Record Archives
- Volume CXVIII, No. XXII - December 1, 2005 - news
Plan cuts student loans
Some CSB/SJU students are upset by the bill that a former Johnnie supported
The Record
Students who receive federal aid may want to keep an eye on Congress.
Recent plans by the U.S. House of Representatives and Senate threaten to cut the amount of federal loans dispersed to students.
On Nov. 18, the House of Representatives passed a budget bill that proposes to cut $14.3 billion from the federal student loan programs over the next five years.
For college students, that means that $7.8 billion would be taken from students through new charges and fees. The rest of the $14.3 billion would come from cuts in subsidies paid to private lenders.
That leaves the average college student paying an additional $5,800 for college, according to the Star Tribune.
The proposal narrowly passed 217 to 215, with all House Democrats and 14 Republicans opposing the plan. The remainder of the Republican majority, which includes former Johnnie, Rep. Mark Kennedy, succeeded in passing the bill.
"Mark Kennedy was the swing vote," said Peter Polga-Hecimovich, co-chair of the College Democrats. "It wouldn't have passed without him."
Most Republicans like Kennedy argue the bill will decrease the huge federal deficit by reducing spending by $50 billion, according to the American Council on Education.
"Reducing the deficit is a responsibility we owe our children," said Kennedy in a press release. "This package is by no means perfect ... Congress needs a tool to help do away with erroneous spending on ineffective programs."
But for most of the 2,500 CSB/SJU students who receive the Federal Stafford Loan—which will be most effected by the bill—the House's proposal is unwelcomed news.
"It definitely impacts me on a personal level," said Cody Fischer, who said he receives the loan.
The week before the House voted on the bill, Fischer and a dozen students ran a campaign at CSB/SJU encouraging students to voice their concerns to Kennedy. But their efforts weren't enough to convince him.
"I feel like he let his constituents down on this one," Fischer said. "I don't want to see people in this community not be able to go here. It's a shame and injustice."
Other students argue the bill and its cuts are necessary.
"Personally I don't have a problem with it," said Luke Hellier of the College Republicans. "We have to figure out a way to pay for the damage Katrina caused. We had to do it some way."
Financial aid administrators point out that it isn't for certain.
First, committees from both chambers will meet this month to resolve differences.
The Senate passed their budget plan Nov. 3, proposing $9.6 billion cut from student loan programs and a $39 billion reduction in federal spending over the next five years.
There will be a vote on the bill after a new draft is created.
"The fights not over yet," Fischer said.