Action needed before Friday

Local, National, Politics 1 Minute

Got an email last night regarding proposed cuts to the FFELP program. It seems that there are those who want to reduce this successful private-public partnership and replace it with increases in the Direct Loan program, which relies on the federal treasury as a source of funds. This makes no sense to me. I’m told that we need to fax a letter to Congressman Bobby Scott by Friday to urge him and others to resist these cuts. My own letter (below the fold) has already been faxed. If you desire to do so, please fax your letter to the Congressman’s office at (757) 928-6694 or (202) 225-8354. His email address is also available on his website.

Congressman Robert C. Scott
2600 Washington Ave.
Suite 1010
Newport News, VA 23607

Dear Congressman Scott

You and I agree that education is a top priority and that access to good education is the key to upward mobility in our society. Part of that access is the ability to afford college. It is because I have become aware of potential changes in the Federal college loan programs that I write to you today.

I understand that there may be an attempt to reduce The Federal Family Education Loan Program (FFELP) and replace it with an increase in the Direct Loan program. I urge you to resist such efforts.

FFLEP has been an extremely successful program, providing the largest source of college financial aid. This public-private partnership utilizes banks and other private lenders as a source of funds. In doing so, FFELP is able to offer lower interest rates and simplified application and approval processes.

The Direct Loan program, on the other hand, uses the Department of Education as the lender. In doing so, the money comes from the Federal Treasury. Given the size of the national debt, additional borrowing to fund this program when another source of funds is already available, is unnecessary, and to me, would demonstrate a lack of fiscal restraint.

Please rebuff efforts to replace FFELP loans with Direct Loans. I believe all will applaud your stance.

Sincerely

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