Reply #10: Educate thyself. [View All]

[rinsd]

May 15, 2006

Senator Clinton Calls For Student Borrower Bill Of Rights

Brookville, NY - Today in her commencement address at the C.W. Post Campus of Long Island University, Senator Hillary Rodham Clinton reiterated her call for legislation that she will introduce to protect the rights of student borrowers trying to repay their loans. The Senator's Student Borrower Bill of Rights aims to provide student borrowers with basic rights so that there is increased transparency in student borrowing, so that loan payments are affordable, so that students can shop for loans in a free marketplace, and so that students have timely information about their loans. The bill will also increase education for students and parents on their rights as borrowers.

“I have heard from too many students across New York that they are overly burdened or treated unfairly as they repay student loans,” said Senator Clinton. “Student borrowers should know that the process won’t be burdensome and that they’ll be treated fairly.”

Students are borrowing now more than ever to pay for higher education. Need-based grant aid has stagnated while college costs have grown. The result is more students borrowing and higher levels of borrowing. In 1993, less than one-half of students graduating from four-year colleges and universities had student loans. Now two-thirds do. Over the past decade, the average debt burden for college graduates has increased 58 percent, after accounting for inflation.

When student loans are burdensome, borrowers may be unable to buy a home. They may avoid important but low-paying professions, such as public health workers, social workers, and teachers. The burden of student loans also prevents college graduates from pursuing a higher degree. According to studies by the Nellie Mae Corporation, 40 percent of college graduates who do not go to graduate school, blame student loan debt. Today 54 percent of former students wish they had borrowed less for college, an increase from 31 percent in 1991. The prospect that student loans will be a great burden may also prevent successful high school students from going to college. 20 percent of low-income high school graduates qualified for college, do not go to college.

Senator Clinton’s legislation is aimed at making it easier for students to repay and at giving them rights that are enforceable. The bill would give them the right to fair, monthly payments that do not exceed a certain percentage of their incomes and fair interest rates and fees. Too many students are seeing their costs go up after they think they’ve already budgeted for what they can pay. The bill would also give them the right to be able to borrow without exploitation. Finally, the bill aims at giving students access to better information about loans and more information that will give them better options.

http://clinton.senate.gov/news/statements/details.cfm?id=255545&&

Senator Hillary Rodham Clinton today announced that legislation approved by the Health, Education, Labor, and Pensions (HELP) Committee includes key provisions of bills she has introduced to address the recent student loan scandals, the need for increased transparency in student borrowing, and increased college access for low income and non-traditional students. The measures were approved as part of the Higher Education Access Reconciliation Act and the Higher Education Amendments of 2007 and will produce $17.3 billion in additional benefits for students, including critical help for low income New York students.

Too many borrowers in New York, and around the country, are lured into borrowing thousands of dollars from companies with questionable ties to financial aid offices. Too often these loans have the maximum interest rates attached to them. Furthermore, our students are not given timely information about their loans from their lenders. We must remedy this situation and remove the economic handcuffs our students are placed in by addressing the problems in the student loan industry and increasing grant aid to students in need,” said Senator Clinton.

The legislation will increase Pell grants to $5100 immediately, providing over $200 million in increased grant aid to New York students for the 2007-2008 school year. The bill also raises the family income level at which a student is automatically eligible for the maximum Pell grant from $20,000 to $30,000. In addition, this bill creates a new loan forgiveness plan for public service employees, simplifies the financial aid application process and extends loan deferment for active duty service members.

The bill includes the following provisions from Senator Clinton’s Student Borrower’s Bill of Rights:

* Assistance for borrowers with disabilities: Allows disabled students to permanently discharge their student loans, with appropriate safeguards.
* Income sensitive re-payment program: Caps monthly loan payment that can be required of a borrower of a federal student loan at 15 percent of the borrower’s discretionary income.
* Timely information: Requires lenders to provide borrowers monthly information about a borrower’s loan, and pertinent information for borrowers in delinquency, default, or seeking to consolidate/reconsolidate. Accurate and comprehensive reporting to credit bureaus: Requires lenders to report student loans to credit bureaus as student loans, differentiating between student loans and other loans on credit reports.

Recent reports have exposed lenders and financial aid officers who have exploited our student loan system for their own benefit, leaving our young people saddled with enormous debts. Our students should have access to lowest cost loans possible and should be treated fairly as they repay their loans,” Senator Clinton said.

Senator Clinton also secured approval of the following provisions from her Non-Traditional Student Success Act, which will make college more accessible and affordable for students who are older, working full or part-time, have children, or are the first in their families to go to college:

* Ending the Work Penalty: Raises the Income Protection Allowance (IPA) to allow working students to keep more of their income without losing crucial student aid.
* Support for Parents: Allows High School Equivalency Program and College Assistance Migrant Program (HEP-CAMP) funds to be used for child care and transportation.
* Support for Foster Youth: Expands the definition of independent students to include youth in foster care, aging out of foster care or emancipated minors.

In New York, the number of students who are 25 and older, who are attending school while raising their families and who are working full-time has grown dramatically over the past decade. This legislation will make it easier for adults to balance school and family so that they can improve their skills and increase their earnings,” said Senator Clinton.

Senator Clinton has long been a champion of higher education and supporting college students. Two of the provisions from the Student Borrower Bill of Rights were enacted into law during the 109th Congress through the Emergency Supplemental Appropriations Act for Defense 2006. Two of the provisions from the previously introduced Nontraditional Student Success Act were also enacted into law through the Deficit Reduction Act of 2005.

http://www.hillaryclinton.com/news/release/view/?id=2173

"I've never heard Hillary mention the issue"

So what? I am sure there are issues that Obama has addressed that I personally am not aware of being far from omnipotent. Google is your friend.