http://www.golocalprov.com/...
“In 1972 my predecessor Claiborne Pell authored the Basic Educational Opportunity Grant to provide federal aid to low-income students and families pursuing a college degree,” U.S. Senator Jack Reed said. “Now, more than 40 years later, Pell Grants have opened the doors to a college education for millions of Americans and last year more than 34,000 students in Rhode Island colleges and universities benefited from Pell grants. I am pleased the program ended the year with a budget surplus, but more must be done to ensure Pell grants will be there to help future generations of students.”
Reed, a member of the Appropriations Subcommittee on Labor, Health and Human Services and Education called education a “bedrock for Rhode Island’s economy and our nation’s future competitiveness,” and said he is working to increase the maximum grant for students to $5,635 for the next academic year.
He has also pledged to help keep interest rates low in the federal programs, a key point of debate as the program’s financial feasibility came under suspicion, and says he has been working to ensure the Consumer Financial Protection Bureau (CFPB) is “up and running with a director who has oversight on private student loans.”
That last point, in particular, will remain a key stumbling block as Republican members of Congress recently launched a plan to block the appointment of director Richard Cordray in an effort to ensure “key structural changes” are made at the CFPB. - Go Local Prov News, 2/12/13
The Pell Grants' surplus is due to changes with the eligibility requirements. These changes have forced thousands of students out of the program, ended subsidized loans for graduate students and eliminated grace periods for the loans of undergraduates. The surplus is up to $9.2 billion. Senators Sheldon Whitehouse (D. RI) and Congressmen David Cilline (D. RI-1) and Jim Langevin (D. RI-2) also celebrated the good news and emphasized the programs importance for making college affordable:
U.S. Senator Sheldon Whitehouse says he’ll continue to argue for “robust” funding for the program as it helps ease the “burden” of higher education on middle class families and students.
"With so many Rhode Islanders still feeling the effects of our nation’s economic downturn, Pell Grants are more important than ever,” U.S. Senator Sheldon Whitehouse said. “Pell Grants cover an average of only 31 percent of tuition, fees, and room and board for students attending public four-year universities.” - Go Local Prov News, 2/12/13
“This report is good news for Rhode Island families who rely on the Pell Grant program,” he said. “Access to higher education will be critical to our recovery as a state and as a nation. As we work to put things back on the right track, it is important to ensure that every young person has access to the education that will allow them to enter the workforce successfully or begin a career.” - Go Local Prov News, 2/12/13
“Pell Grants allow thousands of Rhode Islanders to get the skills and education they need to succeed in the jobs of the 21st Century and, as a result, build a workforce that can compete in the global economy,” Langevin said. “We need to continue to fight to make Pell Grants a priority, recognizing that our economy relies on this proven investment in our future.” - Go Local Prov News, 2/12/13
Last month, Reed, Whitehouse and Senator Dick Durbin (D. IL) introduced the Fairness for Struggling Students Act of 2013 which reverses a 2005 change in bankruptcy laws that makes it nearly impossible to have private student loan debt discharged. Student debt has hit $1 trillion. Here's what the act calls for:
http://durbin.senate.gov/...
The Fairness for Struggling Students Act of 2013 – also cosponsored by U.S. Senators Sheldon Whitehouse (D-RI) and Jack Reed (D-IL) – aims to restore fairness in student lending by treating privately issued student loans in bankruptcy the same as other types of private debt. Since 1978, government issued or guaranteed student loans have been treated as nondischargeable during bankruptcy in order to safeguard federal investments in higher education. In 2005, the law was unjustifiably changed to give private student loans the same privileged bankruptcy treatment as government loans, even though private student loans have vastly different terms and fewer consumer protections. Today’s bill would restore the bankruptcy law, as it pertains to private student loans, to the language that was in place before 2005 so that privately issued student loans will once again be dischargeable in bankruptcy like nearly all other forms of private debt.
“A basic principle of our country is a fresh start for those who get in over their heads with debt, if they’re willing to face the rigors of bankruptcy,” said Senator Whitehouse. “Even this is denied for those drowning in private student loans, as the result of a provision snuck into the 2005 bankruptcy reform legislation in the dead of night. This bill gives us the chance to right that wrong.”
“Private student loans should be treated the same as other private debt in bankruptcy proceedings. This legislation would restore limited bankruptcy protection and send an important message to lenders and students that they need to be responsible,” said Senator Jack Reed. “Getting a higher education is essential today and I will continue working to help make college more affordable. This bill will give student borrowers who are struggling more options to meet their financial obligations and get back on their feet.” - durbin.senate.gov, 1/23/13
You can read more about the act and check in on it's status in the Senate here:
http://www.govtrack.us/...
Senators Al Franken (D. MN) and Tom Harkin (D. IA) are also co-sponsors. The act has received major endorsements:
http://www.huffingtonpost.com/...
The American Association of University Women is on record supporting the bill. In 2012, the Consumer Financial Protection Bureau, the U.S. Department of Education, FinAid.org publisher Mark Kantrowitz, and The Institute For College Access and Success all called on Congress to make it easier for debtors to find relief of their private student loans in bankruptcy. Even Sallie Mae, one of the country's major private student loan players, said they're open to reforming the bankruptcy law.
Martha Holler, a Sallie Mae spokeswoman, confirmed to the Wall Street Journal on Wednesday they still support "reform that would allow federal and private student loans to be dischargeable in bankruptcy for those who have made a good faith effort to repay their student loans over a five- to seven-year period and still experience financial difficulty." - Huffington Post, 1/24/13
Student debt is a huge contribution to our sluggish economic recovery and it needs to addressed, especially with another looming debt ceiling battle:
The program faces a number of key deadlines this year, not the least of which is the ever-changing deadline to raise the country’s debt ceiling. Regardless of how the Pell Grant program currently looks financially, change appears all but inevitable. - Go Local Prov News, 2/12/13
If you have student debt, please contact your representative and urge them to get behind The Fairness for Struggling Students Act of 2013:
Senate:
http://www.senate.gov
House:
http://www.house.gov