Minn. students tell Franken of financial woes as he looks to promote cost-cutting bill
MINNEAPOLIS -- Paul Strain says his family supports his college career, emotionally at least. But when it comes to money, he needs to look for federally supported programs. In his third year at the University of Minnesota Twin Cities campus, the future medical school student said, he already has $30,000 of debt. Strain, a former International Falls resident whose parents live in Duluth, relayed his story Monday to U.S. Sen. Al Franken.
He said that if he becomes a doctor, he may not have trouble paying off his student loans, but someone who becomes a teacher would struggle.
That is just what Franken, a Democrat, wanted to hear as he began a statewide tour of college campuses to pick up ammunition to promote the Student Aid and Financial Responsibility Act. The bill, which the House passed last month, would kick banks out of the student loan business and force higher education institutions to provide the federally funded loans directly to students beginning next year.
Franken said the measure would save $87 billion in the next 10 years by eliminating bank profits from the transactions. Most of the savings would be plowed back into higher education, Franken said, with nearly half being used to increase the popular low-interest Pell grant program.
The bill would not change how the University of Minnesota handles loans, U of M President Robert Bruininks said, because its campuses have provided loans directly to students for more than a decade.
Franken said he will visit several college campus in the next two weeks, including University of Minnesota schools in Duluth and Rochester.
He said allowing banks to make loans amounts to "corporate welfare." He said few bank workers would lose jobs if the bill passes, as he expects to happen later this year, but bank profits would shrink.
Most Republicans oppose the proposal, saying it amounts to federal government takeover of a private business function.
"Who should benefit" from federal money set aside for student loans? Franken asked. "I think it should be the students."
A hand-picked group of students met with Franken on the Minneapolis campus, telling him stories about huge loan payments students will see.
Christina Brakken-Thal, from the western Twin Cities suburbs, said some fellow medical students may face $200,000 loans, which will force them to take more lucrative jobs as specialists instead of becoming family doctors.
Bemidji native Ryan Kennedy said he avoided loans as an undergraduate, but now as a graduate student he expects to need them. And he does not expect to earn big checks because he plans to go into the low-paying public service field.
Kennedy suggested that Congress look into more programs that allow students in some fields to avoid paying back loans.
Sociology major Paul Buchel of Milwaukee, who told about working 55 hours a week at two jobs during college, said that too many people cannot afford to go into public service until they make a lot of money. Then, he said, "the fire is gone."
After the meeting, Kennedy said he was satisfied that Franken understood students' needs. "Students, especially at the University of Minnesota, deserve to have input."
"He seems like a very sincere guy," Kennedy added.