Monday, October 11, 2021

Congress proposes new loan reductions for students, no matter what school they attend

Multiple schools are exempt from the cuts. For example, Georgetown University, the University of Virginia and the College of William and Mary. If passed, they would be required to pay at least $10 million toward Stafford loans, according to the Democrats’ legislation released on Monday. Colleges could also accept students who have been turned down by a federal lender due to lack of funds, so long as they agree to repay the loan over six years.

Congress approved $5 million for settlement payments, first-time loan forgiveness and refinancing programs for graduate students in January, three weeks after graduating. Students had called for higher education benefits and more reforms.

Will DeVries, a 2007 University of Virginia graduate, said he believed the House bills “would do more to save students from themselves.”

“This is not a response to any one specific grievance,” he said. “If anything, it’s an attempt to tackle a problem that affects a lot of people that we all know.”

He added: “If we end up having fewer schools enrolling students, then our graduation rates will go down and our postgraduate-degree rates will go down. And we’ll all pay for that.”

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