The federal government appears to be looking out for students in case the credit shortage makes it difficult to secure college loans.
Education Secretary Margaret Spellings said Friday that her department had reviewed the law and found that it has the power to make U.S. Treasury money available for student loans if necessary. The funds could be provided so that nonprofit agencies that back such loans issued by banks could offer the loans directly if needed.
There have been concerns that the nation's credit problems could extend to student loans. Some lenders have opted out of the federally backed student loan program.
Students starting college next fall will begin seeking financing in the coming weeks and months. Secretary Spelling wanted to ensure that money would be available.
Congress is doing its part as well. Sen. Edward Kennedy, D-Mass., has introduced a bill with the same idea in mind. It specifies that the education secretary can approach Congress directly to free up money for college loans.
The legislation also contains some favorable terms for students, allowing them to defer payments until after they graduate. Tuition grants for needy students are increased as well, the Associated Press reports.
Similar legislation is expected from the House this week.
These are good pre-emptive actions on the government's part, designed to limit the credit crunch's impact on higher education. We need to ensure that educational opportunities are available to those who seek them.
Source:-http://www.watertowndailytimes.com/article/20080406/OPINION01/934002097 |
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