It’s time for the federal government to make some changes. Policy makers can reaffirm their commitment to educational opportunity by considering the following policy options:
• Shift the financing of college from loans back to grants;
• Explore how to make loans worthwhile for private lenders by amending the CCRAA;
• Provide tax credits or financial incentives to lenders who make loans to low-income students with poor or bad credit;
• Provide direct student loans and constrain the private student loan market;
• Require financial institutions to give back to their communities by providing student loan offerings to low-income communities as part of their community reinvestment obligations as is the case for banks under the Community Reinvestment Act of 1977.
As the economy continues its march towards economic recession, we may have come full circle regarding federal aid policy. This should be a clarion call for a renewed commitment to educational opportunity at the federal level.
— Dr. José Luis Santos is an assistant professor at the University of California, Los Angeles’ Graduate School of Education and Information Studies and a 2007-08 fellow of The Sudikoff Family Institute for Education & New Media.
Click here to post and read comments
© Copyright 2005 by DiverseEducation.com
