The average college student takes out $20,000 in student loans to pay for college. Many others have to take out $40,000 or more. Many of these loans are through private banks that charge high interest rates. Banks are making billions in profits off the crushing burden being put on college students.
Obama and Congress are responding to the hardship that young people are facing in order to realize the promise of a quality education. The Student Aid and Fiscal Responsibility Act (SAFRA) is the largest increase in spending on higher education since the GI Bill.
SAFRA will:
1. Invest $40 billion to increase maximum Pell Grant Scholarships
2. Invest $3 billion to to bolster college access and completion programs
3. Keep Interest Rates Low
4. Simplify the FASFA form to make it easier to apply for federal financial aid
5. Invest $2.55 billion in Historically Black Colleges and Universities and Minority-Serving Institutions.
6. Provide Reliable, affordable, high quality federal student loans for families
This will be paid for by ending the practice of giving federal money to private banks and lending institutions so that they service federal student loans to students.
What can you do?
1. Get involved in the United State Student Association (USSA) Raising Pell Week of Action October 5th-8th urging your Senators to vote for SAFRA and make college more affordable for all students.
You can find their toolkits and resources here.
2. Sign Students Over Banks wall of debt and send your Senators a message urging them to vote in favor of SAFRA. You can also find resources and tools to get your campus involved in making college more affordable.
3. Spread the word about the new Income Based Repayment (IBR) system setup by the Department of Education in July 2009. This new repayment system will help students manage their federal student loan debt and if you are a teacher, governmental employee for work for a non-profit 501c3, you might qualify for a student loan forgiveness after 10 years of eligible payments.
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