Joint Statement on House Budget Reconciliation and Student Loans
NEW YORK CITY, NY — While the country was asleep, Republicans made higher education less attainable for thousands of Americans.
The budget reconciliation bill Republicans pushed through the legislative process altered the way Americans pay for college by repealing student loan forgiveness programs, cutting Pell Grants, and increasing the cost of student loan payments.
By pushing Americans away from federal student loan programs, Republicans are effectively guaranteeing that private loans will be necessary to obtain higher education. Unlike federal loans, private loans carry higher interest rates, impose burdensome fees that disproportionately affect low-income students, present fewer student borrower protections, and contain worse credit barriers. These loans will also be less effective, as this move decreases access to income-based payback methods. As a result, this shift not only makes college less accessible but also saddles students with more precarious and costly debt.
Over 61% of Pell Grant recipients could see their award reduced or removed entirely, and, by increasing the credit requirement to receive the maximum grant, roughly one in four students stand to lose nearly $1,500. The message is clear: Republicans are targeting educational opportunities based on economic status. Graduate students, in particular, will face even greater barriers, with even fewer options to continue their education and advance their careers.
The College Democrats of America (CDA), College Democrats of New York (CDNY), College Democrats of New Jersey (CDNJ), and College Democrats of Pennsylvania (PACD) stand firmly against the budget reconciliation bill.
This push towards privatization and more restrictive loan repayment options is yet another step in the Republican agenda of making higher education less accessible for middle and working-class families. They want to make higher education an exclusive benefit for the rich.
We cannot let that happen.
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Signed:
The College Democrats of New York
The College Democrats of New Jersey
Pennsylvania College Democrats
College Democrats of America
Contact Information:
Kiara Tobias-Arias
Communications Director
collegedemsny@gmail.com
Organization Info:
College Democrats of New York
https://www.collegedemsny.org
collegedemsny@gmail.com