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AAE Federal Update July 10, 2012
posted by: Alix | July 10, 2012, 03:17 PM   

President Obama Signs Student Loan Interest Bill into Law


Last Friday, President Obama signed into law a bill that he says will create or save millions of jobs and help millions of college students with rising student loan interest rates. Among the broad provisions, it is designed to rebuild the country's roadways, extend the National Flood Insurance Program and maintain student loan interest rates that were set to double at the beginning of the month.



Following the signing, college students are assured that federal subsidized loan interest rates will stay at 3.4%. The White House estimates that will save more than 7 million students about $1,000 each over the course of their loan. Under the new law, students forfeit the six-month repayment grace period and will have to start repaying their loans as soon as they leave school. Graduate student will have to pay interest on their loans while they are in school.

In 2007, the interest rate on Stafford loans was 6.8%. In 2011, Congress passed a bipartisan bill to cut the rate to 3.4%. The new law extends that rate for the next year, but the rate could rise after that.

Although he praised Congress for an outstanding piece of business, the president said more needs to be done. "It's not enough just to keep interest rates from doubling.  I've asked Congress to reform and expand the financial aid that's offered to students," President Obama stressed.

President Obama Signs Student Loan Interest Bill into Law


Last Friday, President Obama signed into law a bill that he says will create or save millions of jobs and help millions of college students with rising student loan interest rates. Among the broad provisions, it is designed to rebuild the country's roadways, extend the National Flood Insurance Program and maintain student loan interest rates that were set to double at the beginning of the month.

Following the signing, college students are assured that federal subsidized loan interest rates will stay at 3.4%. The White House estimates that will save more than 7 million students about $1,000 each over the course of their loan. Under the new law, students forfeit the six-month repayment grace period and will have to start repaying their loans as soon as they leave school. Graduate student will have to pay interest on their loans while they are in school.

Department of Education Marks 40th Anniversary of Title IX

June 23 marked the 40th anniversary of Title IX, which prohibits discrimination on the basis of sex in any education program or activity receiving federal financial assistance. In a speech celebrating the occasion, Secretary Duncan stressed that Title IX is only 37 words, yet "has forever altered our high schools and colleges for the better."

Secretary Duncan explained that Title IX was one of the "great educational and civil rights success stories of the last 40 years." At an event in Washington, D.C. Duncan was joined by administration officials, including Obama advisor Valerie Jarrett, to express support for the sometimes controversial law.

During the last week of June, several high-profile editorials were written to express support or opposition to the law. One commentator noted the law blazed a trail for female athletes, while another explained the provision needs to be reassessed based on budget concerns and the needs of a 21st century athletic base in public schools.

Click here to watch Secretary Duncan's speech on the issue.

Agreement Reached to Protect D.C. Opportunity Scholarship Program

 

After lengthy debate from union interests and school choice proponents, the D.C. Opportunity Scholarship Program will at least continue on another year. House Speaker John A. Boehner (R-OH) and Senator Joe Lieberman (I-CT) announced last month that they had reached an agreement with the Department of Education to renew the scholarships. The program gives low-income students a route out of failing Washington, D.C. public schools and pays their way into private and parochial institutions.

U.S. House Committee on Education and the Workforce Chairman John Kline (R-MN) praised the decision and called it a victory for students. "I am grateful Speaker Boehner and Senator Lieberman successfully negotiated an agreement," Kline stated. "The benefits of this program are undeniable; not only are D.C. OSP students more likely to graduate high school, but research has shown they're also more likely to pursue a postsecondary degree. I am relieved the Obama administration agreed not to eliminate funding for this invaluable program and will instead work with Congress to ensure the program is expanded as directed by current law."

According to their website, the program received 11,215 applications and awarded 4,900 scholarships from 2004 to 2012. About 1,600 scholarships were awarded for the 2011-12 school year, and about 1,200 students applied to the program for the 2012-13 year. The maximum amount of the scholarships is currently $8,000 a year for students in kindergarten through eighth grade and $12,000 for grades 9 to 12. Nearly 90 percent of students were African American and from single-parent, low-income households.


In 2007, the interest rate on Stafford loans was 6.8%. In 2011, Congress passed a bipartisan bill to cut the rate to 3.4%. The new law extends that rate for the next year, but the rate could rise after that.

Although he praised Congress for an outstanding piece of business, the president said more needs to be done. "It's not enough just to keep interest rates from doubling.  I've asked Congress to reform and expand the financial aid that's offered to students," President Obama stressed.

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