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The Human Needs Report is the Coalition on Human Needs' newsletter
on national policy issues affecting low-income and vulnerable populations.
It is published every other week while Congress is in session.
Article from the July 23, 2007 edition
of the CHN Human Needs
Report:
Both the House and Senate have enacted legislation overhauling student loan programs. The Senate passed its version on July 20, and included a provision to reduce the burden of college loan payments by graduates who enter public service occupations. Public school teachers, social workers, child care and early childhood education teachers, public law enforcement and public safety positions are included in the fields that would see relief from the high cost of student loans. The Senate bill, co-sponsored by Senators Kennedy (D-MA) and Enzi (R-WY), would limit monthly loan payments to 15 percent of discretionary income, and would forgive the remainder of the loan after 10 years in public service employment.
The legislation (H.R. 2669, as amended by the Senate) was passed overwhelmingly, 78-18. An amendment offered by Senator Sessions (R-AL) to strip out the public service loan forgiveness provision was defeated 42-55 (roll call vote, at http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=1&vote=0025).
The student loan bill includes reductions in loan revenues to private lenders, with part of the savings paying for increases in Pell Grants, and the rest reducing the deficit. Because the bill reduces the deficit, it was subject to limited debate (through a process known as reconciliation), allowing the bill to move forward without crippling delay.
The differences between the House and Senate versions must now be resolved by conference committee. One complication is that Senator Enzi favors combining this legislation with another bill to reauthorize the Higher Education Act, up for a vote in the Senate on July 24. The House has not yet passed the reauthorization bill. If the student lending bill can proceed separately, its differences can probably be resolved quickly and sent to the President’s desk for signature. If the public service loan forgiveness provision is retained, it will be a very significant help for workers in human needs professions. |
