College students may face higher interest rates on their student loans due to the Budget Reconciliation Bill, which is now awaiting approval from President Bush.
The bill passed the House on Feb. 2 with a vote of 216 to 214. In December, it passed the Senate 51 to 50 with Vice President Dick Cheney casting the final vote. The bill is forecasted to save $40 billion over five years.
When Steven Piels, a sophomore in the College of Arts and Sciences, applied for his student loan, interest rates were low so he understood the rates would probably increase. But Piels said he still is "unhappy."
Students voiced concern over the increased interest rates because it would further limit the students who can afford to attend college.
"Anything that hinders quality education is a bad idea," Lisa Petak, College Democrats outreach director, said. "When you add financial pressure to students, it makes it that much harder for the lower economic stratus to receive a quality education. The pressure of money is high enough as it is for students."
"Well, I think it's a shame that politicians are making it harder for young people to afford a quality education," said Donald Reinhard, a freshman in the School of International Service. "It used to be that if you borrowed to go to college, you would more than make up for it with higher salaries and be able to pay back your loans. Rising tuition costs, coupled with cuts to financial aid like this are making it less beneficial to go to college for kids who can't easily afford it. These types of budget cuts shouldn't happen, especially when they are used to pay for an unnecessary war and tax cuts for our nation's wealthiest citizens."
The Bill also cuts money to Medicaid, welfare and child support.
Look for more information on how the bill will affect student financial aid in Thursday's issue.
