In July, the House Education and Labor Committee unveiled H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009, which would restructure the current student loan system and redirect the savings into new and existing education (higher education, K-12, and early childhood) programs. President Obama called for this restructuring in his FY 2010 budget request.
While the legislation would create a host of new programs, some of which would support social work students and initiatives such as increased Pell Grants and a new community college initiative, original draft language also proposed to end subsidized loans to graduate and professional students after 2015.
CSWE members were activated to reach out to their House members to oppose this provision in the bill. Since the alert went out on July 17, the bill was introduced with the problematic provision removed. The Committee passed the bill without this provision. For now, subsidized federal student loans for graduate students have been protected.
Graduate students have received subsidized loans since the federal student loan program was established. Social work students rely on financial incentives, such as subsidized graduate education loans, to allow them to pursue the education required for careers in social work.
CSWE Government Relations staff will continue to follow the development of student aid legislation and report on any new developments.