>>Administration Proposes Eliminating Perkins Loans
>>January 14, 1998
>>Early reports on the Clinton Administration's Fiscal 1999
>>Budget, which will be released early next month, indicate
>>that the Federal Perkins Loan program is slated to receive
>>no new funding, which education leaders believe could lead
>>to its elimination.
>>This move comes just three months after Department of
>>Education officials publicly pledged that the program was
>>not in danger of termination.
>>Perkins Loans, a campus-based aid program, provide low-cost
>>loans to about 700,000 students each year. These students,
>>who are among the most financially needy, qualify for more
>>aid than that provided by other federal aid programs.
>>Additionally, Perkins loans carry a lower interest rate
>>than loans provided under the Federal Family Education Loan
>>program or the Federal Direct Loan program. The additional
>>$3,000 available to students through this program gives
>>financial aid officers flexibility to augment aid packages
>>for the neediest students.
>>The Federal Perkins Loan program, formerly the National
>>Defense Student Loan Program, is the nation's oldest
>>federal program for student aid. It was first authorized in
>>1958. Institutions distribute Perkins loans to needy
>>students, and match federal dollars three to one.
>>The proposed elimination of this vital program comes at a
>>particularly important time, as Congress is set to begin
>>the process for reauthorizing the Higher Education Act of
>>1965. If Perkins is not funded this year, it may be
>>permanently eliminated. Additionally, this may be viewed as
>>a first step in Administration efforts to combine existing
>>campus-based student aid programs.
>>Please take action to prevent elimination of the Perkins
>>Call, fax or write these Clinton Administration officials:
>>Deputy Secretary of Education Marshall Smith
>>phone: (202) 401-1000 fax: (202) 401-0596
>>National Economic Advisor Gene Sperling
>>phone: (202) 456-6630 fax: (202) 456-2223
>>Bob Shireman, White House
>>phone: (202) 456-2800 fax: (202) 456-2223
>>White House Office of Public Liaison
>>phone: (202) 456-2930
>>White House Comment Line
>>phone: (202) 456-1414
>>OMB Associate Director for Human Resources Barbara Chow
>>phone: (202) 395-4844 fax: (202) 395-5730
>>Or, call your Members of Congress to let them know how
>>important it is to preserve this program!
>>U.S. Capitol Switchboard (202) 224-3121