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Thomforde urges opposition to proposed cuts in student aid

By Tom Vogel
December 15, 2005

In an open letter to the St. Olaf community, President Christopher Thomforde addressed the recently proposed cuts to federal student aid, noting the potential impact they could have at St. Olaf. "If passed into law, many of our students will be affected by these cuts, especially students who rely on federally supported student loans to pay for their education."

Thomforde's letter 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. By raising the interest rate that students and parents pay for student loan borrowing, it is estimated that an average student with a debt load of $17,500 would pay an additional $5,800 in interest and fees.

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.

"It's simply not smart for the Congress to make higher education more expensive and less accessible at a time when the education of our people will be so important to their economic survival," Thomforde says. "We know that in order for our nation to compete successfully in a rapidly-changing world economy, our people will have to have high levels of education."

St. Olaf College and other private colleges in Minnesota are currently taking part in a national effort by colleges and universities to oppose the cuts to student aid. 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 that helps visitors with talking points and allows them to send a message to their representative in Congress and two U.S. Senators simultaneously. Thomforde asks the St. Olaf community to take action by visiting the site and writing their representatives. "We need to ask our federal representatives to reconsider these decisions and look for other places in the federal budget to reduce debt and spending."

The next step for the House and Senate is to agree on a budget bill. "It is a critical time in the lawmaking process," says Thomforde, "and together we will make our federal representatives understand how important their decisions are for the lives of so many young Americans."

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