Feature Story

July 19, 2007

Congress on Brink of Passing Major Student Loan Bill to Make College More Affordable

From Ascribe Newsfeed:

Congress is currently considering legislation that would overhaul the federal student loan system by cutting subsidies to private lenders, increasing Pell Grants, cutting interest rates on student loans over the next five years and instituting timelines for debt forgiveness for qualified borrowers.

Tamara Draut, Director of Demos' Economic Opportunity Program and the author of "Strapped: Why America's 20- and 30-Somethings Can't Get Ahead", says the bill as originally introduced in the House is a significant improvement.

"It won't end the debt-for-diploma system that has too many young people caught in a vise grip," she says, "but it is a major step in the right direction."

As the EOP Director, Draut has also overseen the Young Adult Economic Series, five reports which focus on the economic challenges of young adulthood, including college affordability, stagnant incomes, high-cost housing, and credit card debt.

For more information on Demos and the Economic Opportunity Program, visit http://www.demos.org.

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