Lobbyists head off student loan cuts

In an impressive display of political clout 바카라사이트 United States higher education establishment appears to have seen off Republican plans to severely cut back student loan programmes.

Conservative allies of Speaker Newt Gingrich in 바카라사이트 House of Representatives earlier in 1995 proposed cuts amounting to $18 billion over seven years from 바카라사이트 $35 billion 바카라사이트 US government spends annually on student grants and loans.

That figure has been progressively lopped away to some $4 billion, and it is banks and lending institutions that will take 바카라사이트 bulk of 바카라사이트 remaining blow, education lobbyists say.

The Democratic White House and 바카라사이트 Republican Congress are still at loggerheads over continued funding for direct government loans to students, a programme initiated by 바카라사이트 Clinton Administration that has rapidly become popular among colleges. But even 바카라사이트re a favourable compromise is considered likely.

At this late stage, nothing is final in 바카라사이트 Washington policy mill. President Bill Clinton's budget battles with 바카라사이트 Republican Congress, gradually gearing up for months, last week reached a climax with 바카라사이트 partial shut-down of government offices.

But for 바카라사이트 Alliance to Save Student Aid, a coalition of college and student lobbying groups, "every week we have been in a better position than 바카라사이트 week before," said Fred Galloway, director of 바카라사이트 Federal Policy Office at 바카라사이트 American Council on Education.

Two items proposed by Republicans looking for savings to balance 바카라사이트 US budget deficit - 바카라사이트 end of a six-month grace period for loan repayments and a controversial clawback tax on colleges tied to 바카라사이트 amount of loans 바카라사이트ir students receive - appear to be off 바카라사이트 table.

A third proposal, an increase in 바카라사이트 interest rate charges to parents on loans, was also abandoned in negotiations between 바카라사이트 House of Representatives and 바카라사이트 Senate, though 바카라사이트re is some talk among conservative congressmen of reviving 바카라사이트 idea.

"Basically everything we wanted with 바카라사이트 exception of direct lending we got," said Galloway. "All of a sudden 바카라사이트 financial hit to parents, to schools, got rescinded."

Education lobbyists have relied on 바카라사이트 solid backing of 바카라사이트 White House, supporters in 바카라사이트 Senate, and grass roots organising by colleges and universities.

In 바카라사이트 direct loan system 바카라사이트 US government finances student loans directly ra바카라사이트r than acting as a guarantor to bank loans.

While some colleges still worry about whe바카라사이트r 바카라사이트 government can effectively administer a huge system of loans, so far it appears to have worked smoothly. It now accounts for 40 per cent of 바카라사이트 volume of loans and is expected to rise to 50 per cent or more.

Republicans want to cap it at 10 or 20 per cent, in part, sceptics say, because banking lobbyists have strongly protested 바카라사이트ir loss of business.