Poll: Students support increase in education-loan limits

According to a survey commissioned by a coalition of higher-education associations, parents and student-loan providers, college students overwhelmingly support higher federal student-loan limits. The survey, conducted for the Coalition for Better Student Loans, found that 91 percent of the students surveyed believe that Congress should increase the maximum loan limits. Under current law, dependent freshmen may borrow no more than $2,625 per year in Federal Stafford loans. On average, the students surveyed would support an increase in that maximum loan limit to more than $8,900.

The telephone survey covered a nationally representative sample of 400 college students and was conducted Aug. 24-29.

The survey also disclosed that:

• Students believe that the financial assistance provided low- and middle-income students and families through the federal student-loan program is more important today than it was just a few years ago.
• Given limited federal resources to fund student loans, the students believe that greater financial assistance should be offered current and future students rather than those who already have graduated from college.

The Coalition for Better Student Loans has proposed a package of student-loan-program reforms for consideration during the reauthorization of the Higher Education Act. The package includes higher Stafford-loan limits, borrower relief from loan-origination fees, more flexible loan-repayment options, maintaining a viable consolidation program and extending loan forgiveness to borrowers in high-need occupations.

The Coalition includes several organizations of which USA Funds^® is a member.