Last week the US House of Representatives passed a bill known as the Student Aid and Fiscal Responsibility Act. In broad terms the bill infuses more money into federal financial aid and it also eliminates subsidies to private lenders. As things stand right now, the government pays subsidies to lenders and guarantees the loans. Under the new plan, all colleges would have to move to the federal Direct Loan program by July 1, 2010.
This has some in Vermont worried about the future of the Vermont Student Assistance Corporation, a non-profit that provides grants, loans, scholarships, and career and education planning for Vermonters and for students coming to study in the state. Currently, about 95% of all Vermont students’ loans and grants go through VSAC.
So, how is VSAC different from other private lenders, and should it be protected? And what might happen when the bill gets to the Senate? VPR’s Jane Lindholm looks into the issues with VSAC President Don Vickers, and Chronicle of Higher Education reporter Becky Supiano.