Ask Congressional leaders what we need to keep the economy strong and they'll say more tax cuts for investors. Whatever happened to the idea that we need a well-educated workforce to keep the economy strong?
A lot of parents and students -- who recognize the value of a good education -- are going deeper into debt to pay higher college fees and tuition. They would welcome some relief. But Mobilize.org [1] says last year's federal budget included tax handouts but cut $12 billion from student loan funding. That means that the typical student debt will jump from $19,000 to $26,000 come July 1, when the federally subsidized interest rate will increase from 4.75% to 6.8%.
The FY06 appropriations bill also froze the maximum Pell Grant, the federal government’s key grant program for low-income students, and cut other student aid programs by $31 million.
Advocates [2] say it's time to tell Congress to stop the raid on student loans.