out of the federal college loan business—a move that could cost Indiana hundreds of jobs.
a student aid bill yesterday that has widespread support, including from the White House. The measure is expected to win passage
today and go next to the Senate.
save an estimated $87 billion, though the figure has been disputed.
such as Virginia-based Sallie Mae, which employs 1,600 in Fishers and 700 in Muncie, fear the proposal would cause massive
job cuts within the industry.
the largest student loan provider, said it could cut about one-third of its 8,500 employees nationwide and close some offices.
The company is uncertain how many jobs could be affected in Indiana, however.
holding a series of town hall meetings and petition drives in Pennsylvania, Florida, Delaware, New York and Indiana.
company’s top executive in Indiana, said during the visit that passage of the proposal would be catastrophic.
look and go through a complete restructuring,” he said.
college reforms and more college aid for veterans.
mortgage their future to pursue their dreams," said the bill’s sponsor, California Democratic Rep. George Miller, chairman
of the House Education and Labor Committee.
college, such as construction at K-12 schools and new preschool programs.
Grants, it would do nothing to curb college costs, which rise much faster than Pell Grants do.
student aid would fulfill a campaign promise by President Barack Obama and transform a long-standing partnership between the
government and the private sector.
of student lending.
Minnesota Rep. John Kline, senior Republican on the Education Committee.
backed by the government to more than 6 million students last year, compared with $14 billion in direct loans from the government.
Private lenders employ more than 30,000 people whose jobs depend on the subsidized loan program, and the industry says many
would be laid off.
will not happen anymore is making those student loans with taxpayer subsidies," he said.
students probably wouldn’t notice any difference in their loans, which they would get through their schools. Broadly speaking,
the bill doesn’t do much to make loans cheaper or help pay them off.
loans—those based on need—from jumping from 3.4 percent currently to 6.8 percent as scheduled in 2012. Interest
rates for most other loans would remain at 6.8 percent.
more than inflation over the next decade, increasing on average by about 2.6 percent yearly, according to the bill’s sponsors.
bill marks the first time lawmakers have ever agreed to a long-term annual increase in the program. Pell Grants have always
depended on annual spending bills and on occasion have stayed flat or been cut when lawmakers came under pressure to reduce
out of lawmakers’ hands entirely, making the program an entitlement like Social Security and Medicare, which would have cost
an estimated $117 billion — more than lawmakers have to spend.