The following is a statement from the Association of American Universities regarding the "Student Success and Taxpayer Savings Plan":
The Association of American Universities (AAU) has significant concerns with the “Student Success and Taxpayer Savings Plan,” released yesterday which will be marked up by the full House Education and Workforce Committee today, April 29.
While it is a worthwhile goal to reduce federal spending, this should not be done on the backs of the very students who are our nation’s future.
AAU has concerns about specific provisions which would:
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Establish risk-sharing policies that would require that all colleges and universities assume responsibility for paying back unpaid student interest and principal on certain federal student loans to the federal government. This policy will have detrimental unintended consequences for students, particularly first-generation and low-income students, who have historically had a harder time with loan repayments. Making institutions assume the risk involved in admitting such students will very likely influence institutions’ willingness to admit them to their schools and directly contradict historical goals of federal loan programs intended to increase access to higher education, not decrease it.
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Set loan borrowing limits to $50,000 for undergraduate students; $100,000 for graduate students, and $150,000 for students in graduate professional programs. Arbitrarily establishing thresholds on student loans will restrict students’ ability to pursue studies at the institution of their choice. Additionally, capping loans will unfairly limit the choice of those students who have the highest financial need.
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Limit Parent PLUS loans and eliminate Grad PLUS loans. This proposal will greatly disincentivize students from pursuing important careers that require additional years of graduate and professional training in fields such as medicine, dentistry, public health, and social work.
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Change the eligibility requirements for Pell Grants for less-than-half-time students and amend the definition of a “full-time” student to increase the minimum credit hours per semester for a maximum Pell award. This provision will harm low-income students who may also be juggling the responsibilities of employment, family, or dealing with other complicated life circumstances.
Since the legislative text was released yesterday morning (only 24 hours before the Committee’s markup), AAU is still in the process of examining the bill’s other provisions. However, given the negative impacts of the provisions outlined above and their potential adverse impacts on making college more accessible and affordable for all students, AAU opposes this legislation and urges committee members to vote against it.
Founded in 1900, the Association of American Universities is composed of America’s leading research universities. AAU’s 71 research universities transform lives through education, research, and innovation.
Our member universities earn the majority of competitively awarded federal funding for research that improves public health, seeks to address national challenges, and contributes significantly to our economic strength, while educating and training tomorrow’s visionary leaders and innovators.
AAU member universities collectively help shape policy for higher education, science, and innovation; promote best practices in undergraduate and graduate education; and strengthen the contributions of leading research universities to American society.
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