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I would recommend waiting a week. Things could change very quickly. Georgine Materniak wrote: > > FYI > I'm passing this info on that I received from a colleague. > > Georgine Materniak > Director > University of Pittsburgh > Learning Skills Center > 311 William Pitt Union > Pittsburgh, PA 15260 > phone: (412)648-7920 > fax: (412)648-7924 > e-mail: [log in to unmask] > > "Life is what happens while you are making other plans" John Lennon > > ---------- Forwarded message ---------- > Date: Thu, 22 Jan 1998 11:19:09 -0500 > From: Cheryl Lovell <[log in to unmask]> > To: [log in to unmask] > Subject: NASPA Public Policy Alert > > RELEASED January 22, 1998 > > !!!!!!!! NASPA PUBLIC POLICY ALERT !!!!!!!! > > Attention NASPA members: > > On Tuesday, January 14th an emergency meeting of higher education > governmental relations officers was held in Washington, DC to discuss > strategies to combat the recent news of President Clinton's proposal to > eliminate Perkins Loans. Every association is encouraging its members > to contact the White House comment line at (202) 456-1414 and the Office > of Public Liaison at the White House at (202) 456-2930. Therefore, we > ask our NASPA members to contact these offices IMMEDIATELY to express > your opposition to the proposed elimination of this important loan > program. We also recommend you contact your Congressional > Representatives and your campus and local newspapers to inform them of > this devastating proposal. > It appears Clinton's recommendation to eliminate the Perkins Loan is a > reversal of policy previously backed by the White House administration > and the US Department of Education. > > We suggest you refer to the attached copy of the Federal Perkins Loan > Program Fact Sheet and a draft letter which would be appropriate for > sending to your elected officials. Please feel free to incorporate this > information into the letters and the calls you make. It is imperative > we express our concern to these officials and that they understand the > proposed elimination of the Perkins Loan Program will have a significant > impact to our students and campus communities. > > Should you need additional information or desire to discuss this > important issue, please feel free to contact Gwen Dungy at > [log in to unmask] or contact Cheryl Lovell at [log in to unmask] The NASPA > Public Policy Advisory > Committee is committed to addressing issues of concern to our members > and to the millions of students you represent. However, we need each of > you to also play an active role in this process. Your telephone calls > and letters will make a tremendous difference. Please follow up TODAY. > This proposal can be reversed if the administration hears from concerned > citizens. > > Thank you for your immediate attention to this important public policy > alert. > > Cheryl D. Lovell, Chair > NASPA Public Policy Advisory Committee > Assistant Professor of Education and Coordinator of > Master's Program in Higher Education and Adult Studies > University of Denver > > Attachments: > Federal Perkins Loan Program Fact Sheet > Sample Letter to Member of Congress > "What you can do" strategies list > ********** > > Cheryl D. Lovell, Ph.D. > Assistant Professor of Education and > Coordinator of Master's Program in > Higher Education and Adult Studies > College of Education > University of Denver > 2450 S. Vine St., Room 229 > Denver, CO 80208 > 303.871.2479 (voice) > 303.871.4456 (fax) > [log in to unmask] > > FEDERAL PERKINS LOAN PROGRAM FACT SHEET > > The Federal Perkins Loan Program, formerly the National Defense Student > Loan Program was authorized by the National Education Act of 1958 and is > the oldest federally supported student aid program. The program offers > -low interest loans to students of higher education institutions through > campus revolving funds. New funds are added to the revolving fund by a > federal and institutional matching contribution. > > The program fosters access to postsecondary education for low income > borrowers by providing low interest loans with favorable terms during a > period of declining grant availability. > > Perkins loan borrowers are predominantly from lower income families. > Approximately 83 percent of the undergraduate dependent borrowers are > from families with incomes of $30,000 or below. Approximately 25% > percent of these borrowers are from families with incomes of $18,000 or > below. > > Perkins loans have a 5 percent interest rate which begins to accrue > after a 9 month grace period when the borrower ceases to be a student. > The loans carry a number of cancellation provisions for public service > through VISTA, the Peace Corps and teacher shortage areas. > > >From program inception over $15 billion in loans were made to 10 million > borrowers from the $6 billion federal dollars appropriated for the > program. In 1991-92, according to analysts at the Department of > Education, 654,244 students borrowed $867,800,439 in loans, with an > average amount of $1326.00 awarded per student. The cohort default rate > of 11 percent for the program is low when compared to other federal loan > programs and is extremely impressive when you consider the borrower > population. The success of the program should be attributed to the > central role of the education institution which originates the loan, > counsels the borrower through repayment. selects contractors for > servicing and collection; ultimately tailoring the program to best fit > the borrower's and institution's needs. Perkins is a risk-sharing > program with an institutional match to new federal contributions of 15 > percent in the 1993-94 award year, increasing to 25 percent in > subsequent years. > > for additional information on the Federal Perkins Loan Program contact.- > > Ellin Nolan Judith Nemerovski Flink > COHEAO Consultant President, COHEAO > 202-289-3910 312-996-2515 > > Prepared by the Coalition of Higher Education Assistance Organizations > (COHEAO) > > WHY IS THE FEDERAL PERKINS LOAN PROGRAM NECESSARY? > > WHAT WILL HAPPEN TO STUDENTS IF THEY CAN NO LONGER APPLY FOR FEDERAL > PERKINS LOANS? > > Without access to a Federal Perkins Loan, many prospective students will > not be able to pursue a post-secondary education, particularly at a time > of escalating college costs. They will be forced to walk away from the > opportunity to improve their lives through the pursuit of their > academic, vocational and professional goals. Further, many currently > enrolled students receiving Federal Perkins Loans would not be able to > return to finish school, consequently dropping graduation rates. > > About 83 percent of undergraduate Federal Perkins Loan borrowers are > from families with incomes at or below $30,000. Twenty-five percent of > these borrowers are from families with incomes of $18,000 or less. > Since its establishment in 1958, the Federal Perkins Loan Program has > made a postsecondary education possible for over 10 million of these > low-income borrowers. Since federal legislation places limits on > student borrowing, it would be virtually impossible for them to pay for > college without a Federal Perkins Loan. The alternative, in many > instances, is a PLUS (parent loan) or a private loan. These > alternatives are far more costly and, for certain students, not even an > option because of poor credit history, lack of credit-worthy co-signers, > or > > COULDN'T THE FEDERAL PERKINS LOAN PROGRAM SURVIVE WITHOUT THE FEDERAL > CAPITAL CONTRIBUTION (FCC)? > > The Federal Perkins Loan Program is notable fbr its structure-students > who benefit from access to Perkins capital help keep the doors of > post-secondary education open for those who follow with every loan > repayment check they send to their institution. However, the FCC is > critical to insuring the longevity of the Federal Perkins Loan Program > for several reasons: it covers the default costs which even the best run > programs face; it meets the needs of increased numbers of eligible > students; and it covers costs that allows campuses to best meet > students' needs. The formula that determines campus-specific > appropriations is need-based, with consideration given to prior-year > collections. The true impact of the elimination of the FCC on the > Federal Perkins Loan Program is not just the federal government's > contribution, but also the potential loss of the one-third match > required by school participants. This match stretches federal dollars > and contributes to the fiscal health of the program. > > WHAT ARE ARE ADVANTAGES OF FEDERAL PERKINS LOANS OVER OTHER LOANS? > > The Federal Perkins Loan Program was established by Congress to promote > access to post-secondary education for low income borrowers by providing > low interest loans with favorable terms (current rate is 5%). Also, > deferments and forbearance can be granted to borrowers with documented > hardship. The loans carry a number of cancellation previsions such as > for public service through VISTA, the Peace Corps and for teaching in > teacher shortage areas. The Federal Direct Student Loan Program and the > Federal Family Education Loan Program do not offer students any of these > benefits. The fact that the Federal Perkins Loan Program is campus > -based is also an advantage for students. The local administration of > funds allows schools to tailor the program to best fit borrowers needs > and to insure efficient operation. > > *** SAMPLE LETTER *** > > Dear Member of Congress: > > The Federal Perkins Loan Program, formerly the National Defense Student > Loan Program, was first authorized by the Congress in 1958 and is the > oldest federally supported student aid program. Over 2,700 > participating higher education institutions offer low interest Perkins > loans to eligible students. These funds are supplemented each year by > repaid loans and federal funds that are matched by institutional dollars > (3 to 1). It is this critical capital contribution that we are asking > you to preserve. > > Collectively, we represent thousands of students who attend higher > education institutions. As participants in the Federal Perkins Loan > Program, we know firsthand the importance of Perkins loans to low-income > students. The $158 million appropriated by the Congress in Fiscal Years > 1994, 1995 and 1997 for the Perkins program leveraged $900 million each > year in loan capital for student borrowers. In addition, in FY 1998, > Congress increased allocations for the Federal Perkins Loan Program's > loan cancellation fired, an indication of increased support for loan > forgiveness for students who serve their communities. > > The Federal Perkins Loan Program fosters access to postsecondary > education for low-income borrowers by providing low interest loans (five > percent annually) with favorable terms during a period of declining > grant availability. Approximately 83 percent of undergraduate Federal > Perkins borrowers are from families with incomes of $30,000 or below. > Approximately 25 percent of these borrowers are from families with > incomes of $18,000 or below. > > Of particular importance are the loan cancellation provisions contained > in the Federal Perkins Loan Program, that apply to nurses, teachers and > other low-income service employees, who choose to work in disadvantaged > areas. The benefits to these areas would be lost with the elimination > of the Perkins program. > > The Federal Perkins Loan Program has made over $13 billion in education > loans to eligible borrowers. This is a program that has stood the test > of time. It enjoys the support of all participating institutions and > its I I percent national cohort default rate indicates satisfaction > among its primary beneficiaries -- student borrowers. > > At a time when access to education is increasingly important and costs > continue to escalate, we urge you to sustain critical federal support > for, campus-based student loans and the Federal Perkins Loan Program. > > Thank you for your interest and attention to our request. > > Sincerely, > > *** WHAT YOU CAN DO *** > > Call people you know in the administration (Department of Education, > Office of Management and Budget, White House) > > Call a member of Congress, congressional staffer or committee staffer > you know. > > Prepare a grassroots message for your members to use when they call the > administration. > > Organize a letter-writing campaign to the administration. > > Prepare op-eds for placement in local papers > > The Message > > Perkins loans have a unique role in student aid. The additional > resources they provide cannot be subsumed under other programs. > > The additional $3,000 available through Perkins Loans gives campus > financial aid administrators the flexibility they need to meet the > special needs of low-income students, by providing less expensive loans > or supplementing federal loans for students whose borrowing needs are > greater than the limits set by the Stafford Loan Program. > > Support all student aid programs, including Perkins Loans. > From: NASPA Office <[log in to unmask]> > > *************************************************************************** > This broadcast message was generated by the NASPA Office using listserve > software. If you have any questions or comments, please > DO NOT select reply in your email software, as this may result in your > message being posted back to ALL NASPA members. Questions or comments > should be directed to [log in to unmask] > ***************************************************************************