Student Loans Jasmine Merali

Historical Background 1643—First scholarshipsInstituted by Lady Anne Radcliffe Mowlson at Harvard University National Defense Education ActEstablished first federal student loans program. 1965—Higher Education ActAuthorized most student financial aid programs. 1972—Basic Educational Opportunity GrantBegan first federal need analysis formula. Origin of the Pell Grant

1992—Higher Education Amendments Added FAFSA, Direct Lending pilot project, and unsubsidized Stafford loans. 1993—Student Loan Reform ActEstablished direct lending. 2005—Higher Education Reconciliation Act (HERA) Cut $12.7 billion from student aid. Increased rates of Stafford and PLUS loans to 6.8% and 8.5%. 2007—College Cost Reduction and Access Act Increased maximum Pell Grant. Cut interest rates on subsidized Stafford loans in half. Added income-based repayments. 2010—Health Care and Education Reconciliation Act Eliminated FFELP, and replaced with Direct Loan program. Accelerated loan forgiveness. Cut monthly payments under income based repayments.

Current State O Defaults O 8.8% of borrowers unable to pay loans O For every defaulting borrower, two more fall behind in payments O Direct connection to unemployment rates O Health Care and Education Reconciliation Act O Direct Loans program O Income-based repayment

Current State debt.jpg n.gif

Opposing Viewpoints YESNO Investment College impossible without them Legislation to make loans more affordable Unsecured debt Burden of debt to pay off Crack down on over- charging colleges

Obama Administration O Affordable student loans O Health Care and Education Reconciliation Act O Increase funding for Pell scholarships O Increase largest college tax credit O Simplify financial aid application ww.saye ducate.c om/ima ges/iSto ck_ XSma ll.jpg

Republican Party Position O Against SAFRA O Eliminates jobs O Against Department of Education O Cut college costs

Michele Bachman O Eliminate Department of Education O Reduce debt load on student O Increase federal loan limit ele-bachmann-student-loans/ content/uploads/2010/10/education- 1.jpg

Rick Perry O Remove role of federal government in education O Lower college costs O Create a bachelor’s degree program that would cost students only $10,000 /wp- content/uploads/2011/09/rick- perry-edu.jpg content/uploads/money_and_graduation. jpg

Bibliography O "Ensuring That Student Loans Are Affordable." The White House. Web. 14 Sept O "Federal Student Loan Programs - History." Federal Education Budget Project. New America Foundation, 10 May Web. 14 Sept O Herszenhorn, David M. "Student Loan Bill Opposed by Group Packed With Ex-Clinton Aides - NYTimes.com." NYTimes.com. The New York Times, 12 Mar Web. 14 Sept O "History of Student Financial Aid." FinAid! Financial Aid, College Scholarships and Student Loans. Mark Kantrowitz. Web. 14 Sept O Kid, College. "Bachmann Speaks Against Dept. of Education in Recent Forum." Web log post. Student Loan Network. Edvisors, 7 Sept Web. 14 Sept O Koerner, Heather. "Credit Cards and College - A Dangerous Mix." Opposing Views. Opposing Views, Inc., 12 May Web. 15 Sept O Lewin, Tamar. "Student Loan Default Rates Rise Sharply in Past Year." Editorial. The New York Times 13 Sept. 2011, New York ed.: A14. NYTimes.com. The New York Times, 12 Sept Web. 14 Sept O Lieber, Ron. "The New Money Rules for Recent Graduates." Editorial. The New York Times 8 May 2010, New York ed.: B1. NYTimes.com. The New York Times, 7 May Web. 14 Sept O "Revamping College Student Loans, Republicans Say NO." America For Purchase. Word Press, 18 Mar Web. 14 Sept O "Rick Perry Is a Higher-Education Visionary. Seriously." Education Sector. 25 Aug Web. 14 Sept O "Student Loan Defaults Rise Again." NYTimes.com. The New York Times, 13 Sept Web. 14 Sept