Hinojosa said the bill would promote education and consumer protection, since it would inform students about how much they can borrow through subsidized, lower-interest loans. Too often, he said, low-income students are steered to “pricier private loan packages” when they still can borrow more through lower-cost subsidized loans.
In her appearance before the House Committee on Education and Labor, Spellings said a department-ordered task force will recommend additional regulations, including the right for borrowers to choose any lender. Any college with a preferred lender list must include at least three choices and indicate why those lenders are on the preferred list.
But even if the new bill becomes law and new regulations take effect, low-income students will continue to face obstacles without an infusion of federal aid. “We have a crisis in college affordability for our low- and middle-income families,” Hinojosa said. “College costs are rising rapidly, and federal student aid has not kept pace.”
--Charles Dervarics
There are currently 2 comments on this story.
Click here to post a comment.
© Copyright 2005 by DiverseEducation.com
