Pallone Joins Students In Praise of Improved Student Aid
April 6, 2010
At the rally called "Victory for Student Aid," Pallone said that taking the banks out of the student loan business we will produce a savings of $61 billion over 10 years that will be used to increase the number and the amount of Pell grants and to fund an improved community college system.
Added to the Health Care Reform Act that was signed into law was the "Student Aid and Fiscal Responsibility Act," which uses existing funds to boost student aid and enhance community colleges. The money will come from the profits banks used to take for administering college loans. The loans will now go directly to students.
"This investment in Pell grants and community colleges will come from the profit margins of the banks at no cost to the taxpayers," said Pallone. "We are investing in the great potential of students, not subsidizing the banks."
In addition, by 2014 college loan payments will be capped at no more than ten percent of the discretionary income of former students.