A r c h i v e d I n f o r m a t i o n

   FOR RELEASE                             Contact:  Kathryn Kahler     February 2, 1995                                  (202) 401-3026

Statement by U.S. Secretary of Education Richard W. Riley Regarding Public Support for Federal Student Financial Aid

The American people overwhelmingly support federal student financial aid for college to help families get ahead, get better jobs, and improve their lives. The American Council on Education's poll results show just how broad and deep that support is.

The proposal in Congress to eliminate the in-school loan interest subsidies, a move that would not only increase the cost of college but could increase student indebtedness as much as 48 percent, would put college beyond the financial reach of many.

Efforts to re-write the law and limit the numbers of students and colleges that can participate in direct lending are also wrong- headed and run counter to a free-market philosophy. As Jane Bryant Quinn's Newsweek column, "Give It a Chance" (Feb. 6), points out, colleges and students like direct lending's hassle- free and speedy processing. The turn-around time is now days instead of weeks. Students also appreciate the program's flexible repayment options. But 'private lenders are screaming' to get their business back.

I say: Let us compete. If we don't do a good job, schools won't sign up. But, if we've found a better way -- and I believe we have -- let our customers, students, schools and taxpayers, reap the benefits.

Education is the foundation of our economic security. American families who seek the dream of a college education aren't asking for hand-outs; they just want a little help. President Clinton and I share that concern. Initiatives such as the Middle Class Bill of Rights and the direct loan program for college demonstrate our commitment to ensuring access to higher education for all those who seek it.