ASO voices concerns in D.C.

Members meet state senators to discuss possible new financial aid bill

Jeff Sandstoe / Roundup

Members of ASO were in Washington D.C. last weekend where they voiced concern to California state senators about a bill to change financial aid.

The main incentive of this trip was meeting with California state senators Dianne Feinstein (D) and Barbara Boxer (D) to discuss the pending Student Aid and Fiscal Responsibility Act (SAFRA).

The SAFRA is a bill that would restructure the way current financial aid is distributed.

Student loans that are distributed through FAFSA are provided by banks that in-turn make a profit off of the interest.

If the bill passes, the government would then be responsible for giving out loans directly through the Department of Education’s Federal Direct Loan program. The government would then be the entity making profit off of the interest according to Bruce Simms, the chair of ASO’s Shared Governance club.

Currently the loans that are given by the banks are federally backed, meaning that if a student should default on paying, the government would step in and cover the immediate payment. The downside of this bill, according to Bruce Simms, is that while the amount of Pell Grants – which are available for students who have a total family income of less than $40,000, is projected to increase, the amount of student loans is scheduled to decrease.

“The government is now going into the banking industry,” said ASO President Shani Simms as she voiced reservations about the bill.

According to Bruce Simms the meeting with Senator Boxer went well and that she listened attentively to them as they voiced their concerns. However when meeting with Senator Feinstein, Bruce Simms said that they were met with a lot of resistance.

“They stuck their attack dogs on us,” he said.

Feinstein was reportedly hostile to the apprehensions of ASO member’s concerns about the decrease of student loans that would be available.

Shani Simms also said that on the trip she had spoken to students from New York where their financial aid is already being provided by the Federal Direct Loan program. She said that reportedly the amount of money students received was significantly lower than in previous years, in some cases as little as half was provided.

“The government is already so involved, it would save $87 billion a year,” said ASO Club Council President Cindy Gerges, one of the representatives in favor of the bill, as she noted the amount of profit it would provide the government.

Shani Simms disagreed with this notice.

“The point of the government is not to make a profit off of its citizens,” she said.

The bill has passed in the House of Representatives and is headed to the Senate for further voting.

During the span of the trip ASO members also attended a leadership seminar provided by the American Student Association of Community Colleges.

Shani Simms hosted a workshop called “Hosting successful events,” in which she provided attendees with steps for planning, funding, and throwing events.

Bruce Simms also led a workshop called “Rise to the challenge.”