New College Loan Program Benefits America's Future
Posted: Tuesday, March 30, 2010
Washington, DC - American competitiveness in the global economy depends on the fortunes of its students. For this reason, USHAA commends Congress and the Obama Administration for supporting recently enacted education loan reform to ensure greater access to higher education for all of America’s children. Americans agree that ensuring fair and equal access to educational funding is a compelling state interest for our nation.
While USHAA's leaders are free market enthusiasts that understand and support the importance of ensuring vibrant and competitive markets to drive the U.S. economy, the recent market failures and financial excesses of bailed-out banks illustrate certain inherent problems that must be corrected. In light of the poor performance by many banks in educational lending, it is not possible for us to conclude that private lenders are best positioned to ensure fair and efficient access to educational loans for America’s children. On balance, therefore, the long-term educational interests of America’s children must always outweigh the short-term profit making interests of private lenders.
It is estimated that the changes to college lending program will generate $68 billion in savings over the next 10 years - money that can be channeled to help even more students. The new law also caps annual loan payments by recent college graduates so that they only have to pay back 10% of their income. "In the coming months, we will continue to track the impact of this legislation on America's future - our children," said Luis J. Diaz, USHAA's President & CEO.
ABOUT USHAA:
USHAA is an award-winning non-profit providing economic advocacy, benefits and education programs to ensure that its business and individual members have equal access to contracts, jobs, education and other opportunities provided by our great nation.
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