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St. Olaf responds to proposed cuts to student aid

By Tom Vogel
December 2, 2005

St. Olaf College and other private colleges in Minnesota are taking part in a national effort by colleges and universities to oppose recent cuts to federal student aid. The effort is in response to a bill approved by the U.S. House of Representatives late last month that would raise taxes on student loans, raise interest rates on consolidation loans and reduce subsidies paid to student lenders.

According to estimates by the Congressional Budget Office, the cuts will total $20.5 billion over a 10-year period. The bill, which passed on a 217-215 vote, would increase the cap on interest rates for student loans and parent loans, from 6.8 percent to 8.25 percent and 7.9 percent to 9 percent, respectively.

The cuts to student aid were part of a $50 billion budget reconciliation bill that also included cuts to Medicaid and food stamp programs. The bill constitutes the largest reduction of federal student loan programs in U.S. history.

In an attempt to encourage students, parents and citizens nationwide to voice their concerns over the bill, the Private College Action Network has established a link on its Homepage with instructions on contacting federal representatives.

Contact David Gonnerman at 507-786-3315 or gonnermd@stolaf.edu.