General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTom Harkin Wants To Take Money From College Students To Pay Reviled Loan Contractors
Tom Harkin Wants To Take Money From College Students To Pay Reviled Loan Contractors
http://m.huffpost.com/us/entry/6278920
(Snip)
The Pell program is the nations largest source of grant aid for college students, according to the White House, and is meant for students from low- and middle-income households. Three of every four students who took out Pell grants during the 2012-13 award year had household incomes of $30,000 or less, according to the Department of Education. Nearly 8.9 million students are forecast to receive on average $3,826 from the program during the 2015 fiscal year, White House budget documents show. The neediest students can receive a maximum of $5,830.
The program has a surplus that the Congressional Budget Office in April predicted will evaporate and turn into a deficit by the 2017 fiscal year, which begins October 2016. Some analysts have said they fear the deficit will come sooner. Harkin wants to use that temporary pot of money to enable the Education Department to increase pay for student loan companies that collect borrowers monthly payments.
Student advocates said theyre outraged.
I am appalled that Senator Harkin would put servicers -- who profit by hundreds of millions of dollars a year -- over the needs of low-income students, said Alexandra Flores-Quilty, vice president of the United States Student Association. Taking funding out of Pell and using it to pay private student loan servicers goes directly against the interests of students.
(More at link)
Wellstone ruled
(34,661 posts)Is this his new job next year working for some Student Loan outfit based in South Dakota?
abelenkpe
(9,933 posts)Reading the comments attached to the article though many people were speculating he'd be doing something related to student loan financing after leaving congress. Don't know his plans though.