CEC legislative update January 13, 2006

When the House reconvenes on January 31, one of the first pieces of legislation that will be voted on is the budget reconciliation conference report (S. 1932). The measure, which reduces spending in an effort to decrease the deficit, contains numerous controversial provisions that cut $39.7 billion from mandatory programs (e.g. Medicare, Medicaid), including $12.7 billion from student loans. The controversial nature of the conference report has caused it to ping pong between the House and Senate.

Originally, on December 16, the House voted to approve the conference report by a narrow 212-206 margin. Days later, on December 21, Vice President Cheney had to cut short his trip to the Middle East to cast the deciding vote (51-50) in the Senate, with four Republicans and all Democrats voting against the conference report. Because the Senate approved an amended version of the report, the House must now reconsider the measure in a vote expected on February 2.

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The budget reconciliation conference report strips the federal student loan program of $12.7 billion, and represents the largest cut to student aid in history. In addition, the bill freezes interest rates for student loans at 6.9 percent, even if commercial interest rates are lower. Other programs that will be cut for the first time in a decade include, Medicaid and Medicare.

CEC firmly rejects these unprecedented cuts to student loans, which will result in students being forced to work more or borrow more privately to reach their higher education goals, or forgo them completely. Because students with disabilities often face challenges moving into post-secondary education, the drastic cut in federal student loans will only exacerbate an already challenging situation. In addition, if student loans are cut, many students who would like to pursue a career in special education will not have that opportunity, and there will continue to be a shortage of professionals who are committed to special education.

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