FOR IMMEDIATE RELEASE:
March 30, 2010
DR. KAGEN: THIS IS AN HISTORIC INVESTMENT IN EDUCATION
AND A VICTORY FOR ALL STUDENTS AND THEIR FAMILIES
Subsidies to banks come to an end, providing $68 billion to educate our children and pay off our national debt
“For too long our student loan system placed the interests of Big Banks over the needs of our children in search of affordable higher education,” said Dr. Kagen. “I’m pleased to have helped secure this critical investment in the education of our children. This law is another important victory for working families in
Starting July 1st, all new federal student loans will be direct loans, delivered and collected by private companies under performance-based contracts with the Department of Education. Ending wasteful subsidies currently given to banks and other financial institutions will free up nearly $68 billion for college affordability and deficit reduction over the next 11 years.
“When we get education right, everything else will follow, but if we get it wrong, nothing else will matter. Access to an affordable college or technical school education is absolutely necessary,” continued Dr. Kagen. “And by ending subsidies to banks, we are helping to secure access to schools otherwise unaffordable, and eliminating wasteful spending of our hard-earned tax dollars.”
The Health Care and Education Reconciliation Act of 2010 is a fair deal for hard working families that strengthens the Pell Grant program, invests in community colleges, and helps student borrowers manage their student loan debt by capping repayments at 10% of their discretionary income.