Former Senator Alan Simpson, a Republican, and Erskine Bowles, a Democrat “ the two men who led President Obama’s deficit reduction committee in 2010 “ released a new plan last week to reduce federal budget deficits, calling for changes to several higher education programs.
The report, entitled “A Bipartisan Path Forward to Securing America™s Future,” was published by the Moment of Truth Project, which is affiliated with the Committee for a Responsible Federal Budget.
The proposal includes higher education reforms that they say will create $35 billion in savings through 2023. The plan would eliminate the in-school interest subsidy on student loans, end PLUS loans to graduate students, use a market-based interest rate for all student loans, and create a “two-tier” system of income-based repayment.
The plan, which is unlikely to be passed in its current form, does not call for significant cuts to the Pell Grant, reports Inside Higher Ed.
Related Links:
A Bipartisan Path Forward to Securing America’s Future
https://media.bloomberg.com/bb/avfile/re_ZJ6krGWVg
Inside Higher Ed
https://www.insidehighered.com/quicktakes/2013/04/22/deficit-reduction-plan-calls-changes-loans
Michelle Cormier Mott
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