Federal student loan program

A snapshot of U.S. federal legislation and policy initiatives affecting workforce development and the HRD profession.

Bush's Budget Includes Job Training Reform

The President proposes a multiyear, comprehensive reform of federal job training programs in his FY 2003 budget proposal. The President's plan includes reducing the number of federal job training programs from 48 to 28, in keeping with his goal to eliminate ineffective programs and improve performance across federal agencies. Overall, the President's budget would fund U.S. Department of Labor employment and training programs at US$4.9 billion in FY 2003, which is $476 million less than estimated spending for those programs in 2002.

New Law Creates Fixed-Interest Rates for Student Loans

On February 8, President Bush signed into law PL 107-139, which amends Title IV (Student Assistance) of the Higher Education Act of 1965 and sets interest rates at 6.8 percent for unsubsidized new student loans made after July 1, 2006. Savings for the typical student borrower is estimated to be US$680 over the life of the loan.