🚀 go-pugleaf

     Here is the latest from NAGPS.  The House Committee on Education and
the Workforce is holding hearings today on student loans.  If you want
lower student loan interest rates, read below and make some calls.

Tim Benner, President
United Government of Graduate Students

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NAGPS LEGISLATIVE ACTION ALERT: 
MARCH 5, 1998

STUDENT LOAN INTEREST RATE BATTLE: CONGRESSIONAL HEARINGS TODAY!

*** CALL THE HOUSE COMMITTEE ON EDUCATION AND THE WORKFORCE! 
*** ASK THEM TO REDUCE THE INTEREST RATE ON STUDENT LOANS!

ISSUE SYNOPSIS: What's the Deal?

        The 1993 Student Loan Reform Act (SLRA) pledged to re-index the 
        interest rates on the guaranteed student loan program. Under 
        current law, interest rates are calculated on 91 day T-Bills. 
        The SLRA legislation would change the index to the Ten Year 
        Treasury Bond plus 1%. This change would result in a REDUCTION
        of student loan interest rates from approximately 8% to about 
        7%. That reduction is quite significant, saving students roughly 
        $750 for every $10,000 borrowed.

        Recently, the for-profit lending industry has raised objections 
        to this change, claiming the proposed reindexing will force many 
        in the industry to pull out. Some recent reports, including a 
        Treasury Department study released last week, suggest that 
        reindexing could damage the for-profit industry's ability to 
        raise the $20 billion dollars a year necessary to fund Stafford 
        and PLUS student loans. However, the Treasury Department report 
        suggests some useful compromise plans.

        NAGPS, many Republicans and Democrats in Congress, members of 
        the financial community, and the Clinton Administration, are all 
        convinced that there are equitable solutions; student loan 
        interest rates CAN fall and the for-profit loan industry's 
        legitimate concerns can be addressed.

        Sallie Mae, one of the largest for-profit providers, has formed 
        a PAC (Political Action Committee) and is aggressively lobbying 
        to scuttle the current legislation. They are proposing a MEAGER
        2 tenths of 1 percent (that's 0.2 % !!) reduction in interest 
        rates. That's not enough to address the daunting problem of 
        rising student debt; the for-profit loan industry clearly CAN do 
        much more. Unfortunately, in the wake of Sallie's Mae's blitz on 
        the Hill, student voices are NOT being heard! 

        Further information on this issue can be found at the NAGPS 
        Student Aid Crisis web page at: http://www.nagps.org/Student_Aid/
        

WHAT YOU CAN DO: Don't Be Silent!

        To counter the rhetoric of Sallie Mae and other for-profit loan 
        providers, we need YOU to contact Congress; specifically, the 
        House Committee on Education and the Workforce, where the 
        Subcommittee on Postsecondary Education, Training and Lifelong 
        Learning will be holding hearings on this issue TODAY, Thursday, 
        March 5.  We need YOU to pledge your support for Congressional 
        action to:

                1) Lower the interest rates on student loans to help 
                   reduce student debt.
                2) Keep the guaranteed student loan program healthy.
                3) Tell them YOUR story. Let them know about your debt 
                   load and your concerns about the future.

        You can reach the House Committee on Education and the Workforce 
        at: 

                Majority (Republican) Leadership:       202.225.4527
                Minority (Democratic) offices:  202.225.3725

                You can FAX the committee at:   202.225.9569

DEBRIEF US!: Tell Us What Happened!

        NAGPS encourages you to share your experiences. Let us know how 
        the Committee responded to your calls and faxes by sending e-mail 
        to Michael Agosta at leg-dir@nagps.org 

Any other questions or concerns? 
        E-mail Michael Agosta, NAGPS Legislative Director, at 

                                leg-dir@nagps.org

http://www.nagps.org/NAGPS/
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