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Public Statements

Sen. Brown Urges Bipartisan Passage of Student Rate Loan Extension

Press Release

By:
Date:
Location: Washington, DC

Senator Brown released the following statement:

"With today's news that college costs have spiked dramatically, it's time to stop playing politics and get to work on a real bipartisan compromise to preserve the current student loan rates. The job market is dismal and the cost of getting a college education is totally out of control," said Senator Brown. "We should be working together on a solution that prevents these rates from skyrocketing in July. We also need to demand far more transparency from universities about what is driving these cost increases. Now it is more important than ever to tackle this problem in a bipartisan way."

Senator Brown's Student Loan Rates Short Term Solution:

Extend the 3.4% Rate For 1 Year·
Current undergraduate subsidized Stafford loan interest rates, which are set statutorily at 3.4% are set to double on July 1, 2012.
With unemployment high, students cannot afford the additional burden of increased student loan interest rates.
Senator Brown's bill will extend the current undergraduate subsidized Stafford loan interest rate of 3.4% for one year.
The extension will be paid for by reducing the improper payments made by the federal government. The Office of Management and Budget (OMB) estimates that federal government improper payments totaled approximately $115 billion in FY2011. Improper payments include payments sent to the wrong recipient, incorrect amounts sent to the right recipients, payments where documentation does not support a payment and funds that are used in an improper manner.

Senator Brown's Tuition Transparency for Students and Parents: Put Tax Forms, Administrator and Faculty Pay Online

To increase transparency, Senator Brown's bill will require higher education institutions to make their tax forms available online.

Senator Brown's bill would require schools to post Form 990 on their websites to increase transparency for students and parents. Currently, Form 990 is not easily available to the public.

Non-profit institutions of higher education are required to file Form 990 every year and are required to disclose the salaries and benefits for all administrators, heads of departments, key employees and the five highest paid faculty members. Publicly disclosing Form 990 will shed light on an institution's overall budget, expenditures and the process and criteria used to set compensation packages.

Posting Form 990 online creates little work for institutions of higher education, increases transparency and will give parents and students greater insight into the big financial picture of non-profit institutions of higher education.


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