AAE Federal Update July 10, 2012 |
posted by: Cindy Omlin | July 10, 2012, 08:48 PM |
Last Friday, President Obama signed into law a bill that he says will create or save millions of jobs and help millions of college students with rising student loan interest rates. Among the broad provisions, it is designed to rebuild the country's roadways, extend the National Flood Insurance Program and maintain student loan interest rates that were set to double at the beginning of the month. Following the signing, college students are assured that federal subsidized loan interest rates will stay at 3.4%. The White House estimates that will save more than 7 million students about $1,000 each over the course of their loan. Under the new law, students forfeit the six-month repayment grace period and will have to start repaying their loans as soon as they leave school. Graduate student will have to pay interest on their loans while they are in school. In 2007, the interest rate on Stafford loans was 6.8%. In 2011, Congress passed a bipartisan bill to cut the rate to 3.4%. The new law extends that rate for the next year, but the rate could rise after that. Although he praised Congress for an outstanding piece of business, the president said more needs to be done. "It's not enough just to keep interest rates from doubling. I've asked Congress to reform and expand the financial aid that's offered to students," President Obama stressed. Department of Education Marks 40th Anniversary of Title IX June 23 marked the 40th anniversary of Title IX, which prohibits discrimination on the basis of sex in any education program or activity receiving federal financial assistance. In a speech celebrating the occasion, Secretary Duncan stressed that Title IX is only 37 words, yet "has forever altered our high schools and colleges for the better." Secretary Duncan explained that Title IX was one of the "great educational and civil rights success stories of the last 40 years." At an event in Washington, D.C. Duncan was joined by administration officials, including Obama advisor Valerie Jarrett, to express support for the sometimes controversial law. During the last week of June, several high-profile editorials were written to express support or opposition to the law. One commentator noted the law blazed a trail for female athletes, while another explained the provision needs to be reassessed based on budget concerns and the needs of a 21st century athletic base in public schools. Click here to watch Secretary Duncan's speech on the issue.
After lengthy debate from union interests and school choice proponents, the D.C. Opportunity Scholarship Program will at least continue on another year. House Speaker John A. Boehner (R-OH) and Senator Joe Lieberman (I-CT) announced last month that they had reached an agreement with the Department of Education to renew the scholarships. The program gives low-income students a route out of failing Washington, D.C. public schools and pays their way into private and parochial institutions.
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