Putting Americans First

We need to be hospitable to our visitors and the people who come here to work or go to school, but we don’t need to do it at the expense of our own citizens.

On Wednesday, Breitbart posted an article about a new piece of legislation that would amend the Higher Education Act of 1965.

The article reports:

Sen. Jim Banks (R-IN) has introduced a new piece of legislation that would amend the Higher Education Act of 1965 to require that recipients of Pell Grants be U.S. citizens, a move the Republican said would “put American students first.”

Unveiled on Wednesday morning, the “Pell for Americans Act” simply states that the federally funded aid grant should only go to American undergraduates — not foreigners. 

Despite efforts to restrict eligibility for non-citizens in the Republicans’ One Big Beautiful Bill, several classes, including refugees, asylees, immigration parolees, Cuban-Haitian entrants, and “conditional permanent residents,” remain eligible. 

Just this February, the Hill reported that the Pell program “is in financial difficulties with a projected shortfall of billions of dollars that could lead to trouble for students as soon as 2028.”

By the end of this fiscal year, the Congressional Budget Office (CBO) projects the Pell Grant program will be $5 billion in debt. Over the next ten years, that number jumps to between $104 billion and $132 billion if nothing is done about the issue.  

Students are not required to pay back Pell Grants. It seems to me that requiring students to pay back at least part of those grants after graduation might solve some of the budget program. Even if a student receives a grant because they cannot afford to pay for their education, they should make enough money after graduation to pay back at least part of the grant to keep the program going.

Some Background Information On The Student Loan Interest Debate

To listen to the President now, you would think that all students are going to be bankrupted in two months and it will be the Republicans’ fault. Well, I don’t know how many students will be bankrupted, but the history doesn’t line up with the current story line.

On March 8, 2010, the Wall Street Journal posted an article entitled, “The Other Government Takeover.” The article explained that the Higher Education Act was an add-on to the Obamacare bill.

The article reports some of the details of the Higher Education Act:

…(The act would) ban private companies from offering federally guaranteed student loans as of this July. Congress has already passed laws in recent years discouraging private lenders from making loans without a federal guarantee. But most college financial-aid departments still want private companies to originate and service the guaranteed loans. That’s because the alternative—a public option run by the Department of Education—has been distinguished by its Soviet-style customer service.

Unfortunately, the Higher Education Act passed, along with Obamacare.

An article posted at Heritage.org provides some background on the current flap about the interest on these loans:

After gaining control of Congress in 2007, then-Speaker Nancy Pelosi (D-CA) and Rep. George Miller (D-CA) championed H.R. 2669, legislation that only temporarily phased down interest rates for subsidized Stafford Loans made to undergraduate students over four academic years, at which point the rate would revert back to 6.8 percent.… [E]xtending the 3.4% interest rate on subsidized Stafford Loans made to undergraduate students for one year would cost roughly $6 billion.

This current ‘crisis’ was set up!

Heritage further reports:

Debate over interest rate hikes are part of a larger problem with federal involvement and ever-increasing subsidies for higher education. The cost of attending college has increased 439 percent since 1982 (after adjusting for inflation). Continuing to increase federal subsidies hasn’t helped reduce college costs and has likely exacerbated the problem over the decades.

Maybe we should consider the fact that as student loan money has increased, the cost of college has increased. The fact that there has been a 439 percent increase in the cost of attending college in thirty-years (even after adjusting for inflation) should tell us something.

 

Enhanced by Zemanta