Commentary; Posted: 12/14/05
Cutting college aid is the wrong thing to do
By Don Heinzman
The proposed reduction in federal student loans could delay or perhaps curtail studentsí college education.
The U.S. House and Senate are negotiating over a measure that could result in a $14.5 billion cut in student loans. At the University of Minnesota alone the loss of aid to students could be $6 million. Our representatives in Congress need to hear now about their publicís concerns over this legislation.
Congress, controlled by Republicans, and faced with a revenue shortage due in part to the Iraq War and hurricane damage, wants to cut back spending. The House in a 217-215 vote approved a projected spending cut of $50 billion, compared to the Senateís $39 billion.
Congressman Mark Kennedy of the Sixth District had his arm twisted by party leaders before breaking a 215-215 tie in the voting process on the budget. After succeeding in getting some assurances and changes from the party leaders and stripping out oil drilling in Alaska, Kennedy voted for the measure, including cuts in student aid.
Congressman Jim Ramstad, a Republican from the Third District who voted against the measure, deplored what the effect will be on University of Minnesota students.
Kris Wright, University of Minnesota student finance director, says in the long run students will be paying more. Already, University students are paying record amounts of debt. In 2002, the average graduate left still owing $13,572 compared to $22,339 this year.
Republicans, on the other hand, contend one problem is soaring double-digit tuition increases. Rep. Gil Gutknecht, says heís empathetic to studentsí needs but ìwe canít keep up with that.î Not one of the state colleges and universities in the Minnesota State Colleges and Universities system, however, is proposing a double digit increase in tuition and fees for fiscal year 2006-07.
At Anoka Ramsey Community College, for example, the tuition for this year went up 3.7 percent and is proposed to be 6 percent higher for the next fiscal year. Democrats contend the new plan will cost students an additional $5,800 for their college education.
The plan under fire would repeal a 6.8 percent cap on interest rates for federal student loans and cut subsidies to lenders. One feature would be a variable interest rate instead of the present fixed rate.
Whatever the cut, it surely will make it harder for students, already strapped with higher tuitions, to get a college education.
At Anoka Ramsey Community College, which includes the campus in Cambridge, students would receive less aid. They would either have to take fewer classes, work more hours or take out an equity loan. The older students with families would have to work more hours, reduce their class load and squeeze the family budget tighter.
Dr. Patrick M. Johns, Anoka Ramsey Community College president, says the borderline student who doesnít qualify for grants and is only eligible for a student loan, will get hurt the most. The bottom line is if federal student aid is cut it will take students longer to get their college education.
The federal government to its credit has given students increasingly more loan aid. In 2004-05, the average full time student received $4916 in federal loan aid compared to $1946 20 years ago.
While the Congress must cut expenses, doing so by cutting aid to college students is the wrong way to go. Parents and students must let their congressman or congresswoman know their views on this cutback.
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