House budget cuts student loans: $10 billion reduction threatens College scholarship funding
By Chung-Mei Lee | August 16, 1995In an effort to lower federal spending, the U.S. House of Representatives recently passed a budget resolution cutting $10 billion over seven years from the student loan program, threatening the in-school interest exemption of many students. Democrats are in favor of in-school interest exemptions while some Republican members argue the interest subsidy is an unnecessary program in which people without college degrees have to pay taxes to support people who do have degrees, said Kevin Boyer, executive director of the National Association of Graduate Professional Students. "This is an issue that will seriously affect the lives of students, and we strongly encourage the students to write to their senators and congressmen to oppose the cut," Director of Financial Aid Virginia Hazen said. The Financial Aid Office has been active in getting the students to write to their representatives to protest the proposed cuts.