Story Tools

Email this story | Print this story

Indexes

Today's Stories

Last 7 Days

Top Blogs

• Murder trial of Lodi businessman begins

• Homeowners liable for sidewalks

• Kindergarten countdown

• Higher expectations: Is your child ready for kindergarten?

• Aiming to give son the best academic start

• Regional Roundup

• City sending hotel furniture to Louisiana

• Logbook

• Pombo, Congress cutting loans to college students

November 20th, 2009

• Acampo woman killed

• Salvation Army Kettle Kickoff

• Advocacy groups sue East Bay Municipal Utility District over Pardee expansion

• Regional Roundup

• Galt plans to help residents with energy-efficient projects

• Stable southeast of Lodi approved

• One year after a heart attack, Lodi's Judy Mims thanks rescuers

• National Guard troops return home in time for the holidays

• Real estate market gets on more solid ground

November 19th, 2009

• Lodi Unified School District board votes to cancel summer school for 2010

• Water surges in Mokelumne River yield more salmon

• Lodi City Council will consider redevelopment next June

• Lodi City Council plans to cap number of taco trucks at 22

• Corrections

• Chase ends in crash

• Operation: Christmas

• Logbook

• Suspect arrested after hiding in fridge

• Galt Joint Union High School Distric hires new superintendent

• Sales tax hike yields dividends: 5 new officers join Galt Police

November 18th, 2009

• Regional Roundup

• Paranormal group conducts second investigation of building

• Congress allocates money for local water projects

• Lodi man finds wife's ashes during police display of stolen property

• Galt City Council rejects study on rent stabilization

• Sarah Palin's book hits the shelves: Locals react

November 17th, 2009

• Clarification

• Lodi Budget and Finance Committee to look into ways to save money on employee benefits

• Regional Roundup

• Decision on summer school expected at tonight's Lodi Unified School District meeting

• Clements gets free water rescue boat

• Redevelopment to be discussed by Lodi City Council again

• Court reinstates death penalty for killer of Lodi grad

• Paying tribute to a Lodian

November 16th, 2009

• Correction

• Public Meetings

• Regional Roundup

• Three members of Lodi-area family fall ill after eating poisonous mushrooms they reportedly found at Lodi Lake

• Sierra Adventure store to close after four years in Downtown Lodi

• Lodi's First Sip event showcases area wineries' latest vintages

• City Council 'triple-dog dared' to ditch cars, use Lodi buses

November 14th, 2009

• Galt school district narrows superintendent search to one

• Regional Roundup

• A first look at 2009 vintages at Lodi's First Sip wine-tasting event

• Watchful neighbor in Lodi helped bust suspected burglars

• Despite budget cuts, some Lodi Unified School District salaries continue to rise

• Despite an increase in homeless students, school districts look to bolster enrollment, raise revenue

• New Galt city manager juggles job, family

November 13th, 2009

• What to expect with new homebuyer tax credit

• Lodi Muslim: Local mosque not involved

• Regional Roundup

• Mayor Larry Hansen points out Lodi's economic progress

• First phase of Lockeford park by 2011?

• Lodi veteran recounts close calls in Vietnam

• Burglary suspects are under arrest

The following stories have received the most reader comments during the last 7 days.

• The country's mess is our fault (155)
• Obama is not a moderate (130)
• Sarah Palin's book hits the shelves: Locals react (67)
• Despite budget cuts, some Lodi Unified School District salaries continue to rise (58)
• Lodi City Council plans to cap number of taco trucks at 22 (48)
• The haves should help the have-nots (30)
• Public health care is a Christian option (27)
• Lodi Flames slim playoff chances vanish in setback to Tracy Bulldogs (25)
• Tokay in, traveling to unbeaten No. 3 Grant for football playoffs (25)
• Nightmares about America's future (23)

ADVERTISEMENT

Pombo, Congress cutting loans to college students

Congress narrowly passed a bill Wednesday that will cut $12.7 billion in federal student loans through higher interest rates and reductions in subsidies to banks that lend money to students.

The bill, which will take effect July 1, also boosts the amount of money college students can borrow. The provisions on student financial aid are part of the Deficit Reduction Act, which shaves $39 billion off federal programs such as Medicaid and Medicare.

"Instead of investing in higher education and the future of our country, Congress passed legislation that puts college even further out of reach for America's families," said critic Eddy Morales, president of the United States Student Association.

Republicans call the bill a win-win for students and taxpayers, rooting out unnecessary subsidies to lenders while increasing student access to loans. They say the measure is a step to curb the unsustainable growth in those federal programs.

Rep. Richard Pombo, R-Tracy, supported the bill, which was passed by a vote of 216-214.

"Tough decisions must be made, including updating some of our federal programs and reining in spending to ensure a strong economy," Pombo said. "The alternative is to raise taxes for every working American and pass along the heavy burden of a deficit to future generations."

The bill locks the interest rate at 6.8 percent for student borrowers, who now pay an adjustable rate that stands at 4.7 percent but could have climbed as high as 8.25 percent.

A college student in California borrows an average of $16,099 by the time of graduation. At the interest rate of 6.8 percent, the student has to pay $6,133 in interest over 10 years, $2,023 more than at an interest rate of 4.7 percent, said Earl Hadley, Education Coordinator for Campaign for America's Future, a Washington, D.C.-based progressive think tank.

Students can take out loans from banks subsidized by the government or directly from the government. The bill reduces assistance to these banks and also requires them to pay a 1 percent insurance fee, which is expected to be passed onto students.

Meanwhile, the bill enables students to borrow more money. The loans freshmen can take out will rise from $2,625 to $3,500 a year, and the number for sophomores will go up from $3,500 to $4,500. The amount allowed for juniors and seniors will remain the same at $5,500 a year.

About $3.75 billion of the projected savings will go to a new scholarship for students who study math, science and foreign languages. Yet critics say all the savings should be invested back into higher education.

According to the College Board, 47 percent of students take out federal loans. Nationwide, tuition and fees average $2,191 this year at two-year public colleges, $5,491 at four-year public colleges and $21,235 at four-year private universities.

Fees at California State University and University of California schools have risen three years in a row. At CSU institutions, undergraduate students pay $3,164 a year for a full course load and graduate students pay $3,746. UC charges undergraduate students an average of $6,141 a year, graduate students $6,897 and those in professional programs $18,029.

Hadley said the name of the Deficit Reduction Act is misleading, because the savings from student loans and other federal programs will be too little to plug the deficit created by the $70 billion tax cuts Congress will soon vote on.

"That makes the whole thing utterly, morally wrong," he said.

Contact reporter Brenda Huang at bhuang@tracypress.com.