Letter to the editor

Last month, the most sweeping reform of the country's federal student aid system in history was signed into law by President Obama.  The new law, the Health Care and Education Reconciliation Act, improves the federal student aid program by ending a wasteful student loan program called the Federal Family Education Loan program, which allowed the government to heavily subsidize private banks to issue federal student loans, and converting all federal student loans to direct government loans.  This move will save taxpayers nearly 70 billion dollars over 10 years with savings being used to make key investments in both early and higher education and paying down the federal deficit. 

In Delaware specifically, student aid reform will provide 53 million dollars in Pell Grants, over 10 million dollars for Minority-Serving Institutions and community colleges, and 7.5 million dollars in College Access Grants over the next ten years.  All of these investments are paid for by the reforms to the student lending program.

Almost all of the 21,000 students at the University of Delaware receive direct government loans.  As a result, about 44 percent of the graduates leave school with an average of $17,200 in student loan debt.  While this number is nothing to celebrate, it is far below the national average.  Nationwide, two-thirds of graduates take on almost $25,000 of debt on average.  By utilizing direct government loans, Delaware students are provided with lower-interest rates and income-based repayment options that allow for financial flexibility.  

Student aid reform provides much-needed financial relief for our nation's students at no new cost to taxpayers.  The new law reduces the federal deficit while making higher education more affordable and accessible for future generations of students and their families.  That is why the student body president of the University of Delaware and the United States Student Association fully support this reform.

David Tusio, SGA president