WASHINGTON, DC -- "The House Republican budget plan released this week takes a direct hit at middle class Minnesotans by eliminating the Stafford loan program," said Congressman Collin Peterson (DFL-7th District). "Millions of young Americans with dreams of attending college could have those dreams crushed by the House Republican budget plan."
Stafford loans allow students to defer interest payments until six months after they graduate. Without this program, the cost of a college education will increase by thousands of dollars for each student.
"Right now, 121,648 students in Minnesota are participating in the interest-deferred Stafford loan program. Chances are, without this program, the majority of those students would not have even considered attending college."
Of the $35 billion in financial assistance the Education Department makes available through grants, loans and work-study programs, the GOP budget proposal would reduce that by $23 billion. At least $18 billion of those cuts would come from eliminating the Stafford loan program.
"Some Republicans have mentioned an alternative that would eliminate the in-school subsidy only for graduate students," Peterson said. "That idea is also ridiculous. Congress shouldn't be messing with these programs, and the only reason Republicans are looking to cut education is so they can pay for their tax cuts. What's more important, a tax cut, or your children's future?"
As co-chair for policy of The Coalition, Peterson is helping to draft a budget alternative which restores the Stafford loan program and all other education cuts proposed by the Republicans. The Coalition budget does not require cuts in education programs because it does not include the revenue lost from the GOP tax cuts.