After turning down legislation that would have stunted Pell Grant growth, the U.S. House of Representatives proceeded to cut student aid, passing a bill that reduces funding of federal student loans by $14.3 billion.
The downsizing is part of a “budget reconciliation” process to reduce the federal deficit by $50 billion. In the report, the Congressional Budget Office concluded that the bill would force a change in interest rates on student loans, which would inflate student borrowing costs by $5.5 billion.
The bill, passed by a narrow 217-215 vote, will move into a conference committee with the Senate, which approved a version of the bill that also includes a $15 billion cut to student-loan programs. In addition, the Senate bill establishes grant programs that could benefit students from disadvantaged backgrounds.
The House passage dealt a blow to college advocacy groups, which have been lobbying politicians to stand against the cuts. The United States Student Association spearheaded a nationwide crusade against what it dubbed a “raid on student aid.”
“Students intend to make Congress aware that budget reconciliation threatens the future of our generation and the livelihood of our country,” USSA Board Member Ashley Rees stated in a press release. “We are optimistic that we can defeat the final budget reconciliation bill, even if it means we must make calls during finals week and our winter vacation.”
Both Chancellor Marye Anne Fox and A.S. President Christopher Sweeten have sided with the campaign, and spoke out on Nov. 1 against cutting higher education loan financing.
“This is a very important challenge we are facing,” Fox said. “Any effort that shifts the responsibility from the federal government to the backs of students is not a prudent way to address the future. There is a challenge in affording higher education, but it must have access and affordability.”
Other college organizations are galvanizing in opposition to the cuts. The California Public Interest Research Group has launched “student debt alert,” a campaign that aims to publicize a platform of student-aid reform. Other groups, such as the Student Aid Alliance, are organizing similar efforts.
“Whenever the student aid programs produce savings, Congress takes them to spend on other areas of government, whether deficit reduction, hurricane relief or other education and health programs,” SAA co-Chairs David Ward and David Warren stated in a letter to Congress. “Congress must stop the raid on student aid!”
However, the move to green-light the cut emphasizes fiscal responsibility, said some of the bill’s supporters.
“[The] vote is an investment in America’s future,” Rep. Duncan Hunter (R-Calif.) stated in a press release. “Through this legislation, we are taking the necessary steps toward reducing the deficit, renewing our commitment to the American taxpayer and responsibly addressing our new fiscal realities.”
