Obama Statement on the Resignation of Theresa Shaw
U.S. Senator Barack Obama (D-IL) today released the following statement on the resignation of Theresa S. Shaw, the top federal student loan official:
"President Bush should appoint a chief executive for the Office of Federal Student Aid who will put college students first and the banking industry last. It is not a coincidence that as the banks' profits have increased so has the loan burden for college students. With the right person in charge, we can make college more affordable for hundreds of thousands of qualified young people."
"We must create incentives, not penalties, for students who aren't fortunate enough to have someone else pay for their higher education. While students in need used to be able to rely on federal grants to cover nearly all of their college costs, they are increasingly forced to rely on private lenders that charge higher rates over longer terms. As Congress reauthorizes the Higher Education Act this year, we must ensure that college loans remain affordable and accessible, interest rates are capped and barriers deterring students from attending college are broken down."