Rep. Kaptur Slams Senate Republicans for Failure to Renew Popular Student Loan Initiative
Statement
Congresswoman Marcy Kaptur (OH-9) rebuked Republican Senate Leadership today after the Senate blocked renewal of the federal Perkins Loan program, allowing the popular student financial aid initiative to expire and preventing colleges from making any new federal Perkins loans to students in need of financial support. Earlier this week the House passed a one-year extension to the Perkins Loan program. More than 500,000 students were awarded student loans through the initiative last year alone.
"I am deeply disappointed that Republican Senate leadership has chosen to indulge the ideological whims of a single powerful Senator at the expense of thousands of Ohioans and millions of students across the U.S." said Rep. Kaptur. "Perkins loans have a 50 year history of creating opportunity for those who have earned a place at an institution of higher education but who might not otherwise be able to afford to attend. For many students, private loans are not a viable alternative as they are either too expensive or too risky to take on.
"Student debt in this country is already reaching critical levels," Kapturcontinued. "Nearly 20 percent of our nation's $1.2 trillion outstanding debt is carried by borrowers who are 50 or older and more than a third by those 40 and older. Forcing the expiration of the Perkins loan option disrupts a mechanism that was working to relieve that pressure and create opportunity for working students to enter the middle class. Why throw sand in the gears for thousands of Ohio's brightest, hardest-working students? Ask the one Tennessee Senator who is responsible for it."
Perkins Loans are popular among college and university administrations because they give institutions more flexibility in how funds are awarded than is typical for most other federal aid. Rep. Kaptur was one of 95 signatories on a September 2nd letter calling for the program to be renewed. Among other things, the letter points out the following:
"These revolving funds are what make the Federal Perkins Loan Program self-sustaining, with student loan repayments paying for new loans. The continuation of the program would not cost the government any additional money but its elimination would cost participating colleges and universities millions."
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