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Sep

27

Bush signs major college cost assistance, loan forgiveness bill


Not to over-pimp the new Wide Open blog, but here’s the entry I wrote over there on this topic.

This bill, now law, has been a long time coming.  As Bush is quoted saying in this CNN story:

U.S. President George W. Bush signed a $20 billion expansion in student aid and deep cuts in federal subsidies to lenders into law Thursday, just as concern over the legislation and weak credit markets threaten the proposed purchase of student lender SLM Corp. (SLM).

At a White House signing ceremony, Bush said the bill will help bring higher education to millions of low-income U.S. citizens through the expansion of federal Pell grants.

“I love the fact that this country is dedicated to helping people who want to realize their dream,” Bush said. “The College Cost Reduction and Access Act expands one of America’s most important and successful education initiatives – the federal Pell grant program.”

I didn’t think it would happen, but I am extremely content that it has. I previously referred to the effort in May in two different posts, here and here.

Noticeably absent from this White House presser?  No mention of the massive loan forgiveness program that’s now law.  Here’s the specs on the bill, and specifically, loan forgiveness, from the National Association of Financial Aid Administrators:

Title IV – LOAN FORGIVENESS

The proposed legislation would allow the Secretary of Education to cancel the balance of any interest and principal due on any Federal Direct Loan – including Direct Stafford, PLUS, or Consolidation Loan – that is not in default for borrowers who:

  • Have made 120 monthly payments on a Direct Loan after October 1, 2007 as part of an income contingent repayment plan or a standard repayment plan based on a 10-year repayment schedule
  • Are employed in a “public service job” and has been employed in a public service job during the 120 payment period.

A public service job is defined as a full-time job in emergency management, government, military service, public safety, law enforcement, public health, public education, social work, public interest law services, child care, public library sciences, or any other job at an organization that is described in section 501(C)(3) of the Internal Revenue Code of 1986.

Here’s the text of Bush’s comments upon signing the bill.  Not one mention of loan forgiveness.

Sourpuss.

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By Jill Miller Zimon at 1:41 pm September 27th, 2007 in Announcements, Education, Government 

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