Perkins Loan program set to expire at end of month, after 57 year run

The country’s longest-running student loan program, the Perkins Loan, is set to expire on September 30th and it remains unclear whether the program will be extended. For the past 57 years, the Perkins Loan has aimed to serve students with the highest needs and is unique because of the flexibility in the loan.

The Perkins program distributes $1.2 billion in loans each year, which represents only 1% of college loans disbursed in 2014.

Colleges and Universities receive an allotment of Perkins Loan money and are responsible for determining who has the most need in their student body and passing on the loan to them. Many believe this is a cost-effective model because universities use the money that they are paid back through the loan program to distribute more loans.

The loan also provides students with a 9-month grace period after graduation before they begin repayments and allows the loans to be cancelled if the student goes on to work in certain public fields, such as law enforcement or social work.

At least 95 members of Congress, university and college leaders, and the National Association of Student Financial Aid Administrators (NASFAA) are prepared to defend Perkins Loans. However, key GOP lawmakers appear to be prepared to let the program expire.

Perkins Loans are not without their pitfalls. Some wish to simplify the federal aid programs to students to make it easier for students to navigate the system. The chairman of the Senate Committee on Health, Education, Labor and Pensions, Senator Lamar Alexander (R-TN) would like to see a simplified system with three programs for aid: one federal loan program, one work study program, and one grant program — which would leave no room for the Perkins program.

Additionally, the funding formula used to determine how many Perkins loans a college can distribute is outdated. Ben Miller, Senior Director for Post Secondary Education at the Center for American Progress points out:

“The funding formula guarantees colleges receive the same amount of money that they did in 1999. Because the 1999 amount was supposed to provide colleges what they received in past years, that amount is similar to what schools received in 1979. The 1970s funding formula looked at school enrollment to determine how those dollars would be allocated. However, during that time period, enrollment in colleges and universities in the Northeast was much more concentrated than it is now, so students attending universities in other parts of the country are losing out, Miller said.”

 
While there are legitimate reasons to simplify student aid programs and ways to improve the existing Perkins program, there is little chance of that happening before the end of the month and if the program is allowed to expire, it is America’s neediest students who will pay the price.

According to NASFAA President, Justin Draeger:

“If Congress doesn’t vote to extend the program before its Oct. 1 expiration date, incoming low-income students are expected to face a gap of $2,000, on average, in their financial aid packages.”

 

Deja Coup: Burkina Faso military arrests civilian leaders (updated)

The Burkinabe Presidential Guard has just detained (kidnapped) the president and the entire cabinet of Burkina Faso in front of journalists. The country is less than one month away from elections but the interim cabinet had discussed abolishing the Guard because it was dangerous. This could be coup #3 of the past year. (If confirmed, it would be the 8th to succeed since independence.)

Update: More info

There was no immediate claim by the military on public air waves that they now controlled the country.

News of the standoff Wednesday created panic in Burkina Faso’s capital of Ouagadougou, where people closed shops early and headed home fearing violent demonstrations. The protests that led to President Blaise Compaore’s ouster escalated to a point where the parliament building was set ablaze.
[…]
The prime minister initially had threatened to disband the [presidential guard] back in December but later reversed course. Then on Monday, a truth and reconciliation commission released a report calling for the disbanding of the unit. Human rights groups have accused the regiment of opening fire on unarmed demonstrators last October, when massive protests forced Compaore to resign.

 
See also our extensive archives on Burkina Faso political analysis.

Update II: Presidential Guard troops fired as protesters confronted them over their arrest of the civilian government.

Update III, 9/17/15, 4:29 AM ET: An officer has announced a coup and plans for a “national democracy council” to organize “democratic and inclusive elections.” The overthrown transitional civilian government was already wrapping up preparations for democratic elections next month but they were not “inclusive” in the sense that they excluded many people affiliated with the regime overthrown less than a year ago. The coup leaders are likely representing just 1,300 troops in the renegade Presidential Guard and very few people beyond that (except perhaps some allies of the former regime).

Sept 16, 2015 – Arsenal For Democracy 143

Posted by Bill on behalf of the team.

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Topics: How to redirect hundreds of billions of dollars in subsidies for the wealthy toward low-income programs; the low-wage service economy recovery; should the US accept more Syrian refugees? People: Bill, Kelley, Nate. Produced: September 13th, 2015.

Episode 143 (55 min):
AFD 143

Discussion Points:

– CFED.org: “Redeploying $540 Billion in Federal Spending to Help All Families Save, Invest, and Build Wealth”
– Why it doesn’t feel like a recovery: So many new jobs in retail services get paid less now than before the recession’s peak.
– Should the U.S. accept more than just 10,000 Syrian refugees in the coming year?

Related Links

Corporation for Enterprise Development (CFED): “Redeploying $540 Billion in Federal Spending to Help All Families Save, Invest, and Build Wealth”
NYT: “Low-Income Workers See Biggest Drop in Paychecks”
AFD by Kelley: “United States to accept (a few) more Syrian refugees”

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And don’t forget to check out The Digitized Ramblings of an 8-Bit Animal, the video game blog of our announcer, Justin.

Guatemala has a lot to celebrate this independence day

Today Guatemala celebrates its Independence Day and it is quite a different country than it was just 365 short days ago, or even six months ago, when I left Guatemala after finishing my two years of Peace Corps service in the rural, western highlands of the beautiful country.

Photo taken by Kelley in Cajolá, Quetzaltenango, Guatemala at a girls' leadership camp hosted by Kelley and local health center staff.

Photo taken by Kelley in Cajolá, Quetzaltenango, Guatemala at a girls’ leadership camp hosted by Kelley and local health center staff.

When people ask me if I am glad to be back, I sincerely respond that I am not sure if I’m glad to be back in the United States, but I am definitely glad that I am not in Guatemala anymore. You see, Guatemala is an extremely difficult place to live. Bus drivers are frequently shot by cartels when bribes are not paid; men present a real and constant danger in the street and at home because of an oppressively “machismo” mindset that persists in the country; and 50% of children are chronically malnourished, an unfathomable and heartbreaking statistic.

Not only is Guatemala a hard place to live, it is a really hard place to get things done, Decades of impunity, staggering inequality, and corrupt governments make Guatemala a perfect storm of inefficiency and the people of Guatemala, particularly the large indigenous population, are the ones who suffer. According to the World Bank, of every country in the world, Guatemala spends the least on health, education, and infrastructure, proportionate to its economy. The Executive Director of the Foundation for the Development of Guatemala (Fundesa), Juan Carlos Zapata, reports “We believe that 30 percent of the budget is lost to corruption.”

However, today as I think about Guatemala, I am able to reflect more softly on my experience and I have brighter hopes for what’s ahead in Guatemala. Maybe that’s just because my months at home have allowed me to physically and emotionally begin to recuperate from an exhausting two years.

But I think it has more to do with the political revolution that is well under way in Guatemala. Guatemalans in the capitol, Guatemala City, and around the country, have begun to say “enough is enough”. Maybe, like many other countries, this is because of the smart phone revolution, allowing people to spread pictures and ideas more easily. Maybe Guatemala is finally shedding the yoke of a 36-year-long civil war, which ended in 1996 but still stains every part of society. Whatever the reason, the actions taken by ordinary Guatemalan citizens in the past few months make me proud of the time I worked in the endlessly fascinating country of Guatemala.

Protests began in April after the Comisión Internacional contra la Impunidad en Guatemala (International Commission against Impunity in Guatemala, CICIG), an international body backed by the United Nations and responsible for prosecuting serious crimes in Guatemala, charged the Vice President and others in the administration with taking bribes for reducing import and customs taxes.

The first big victory for Guatemalans seeking a less corrupt government was the resignation of Vice President Roxana Baldetti on May 8, 2015, who prosecutors claim took $3.7 million in bribes as part of the customs scandal. At the time, President Otto Pérez Molina claimed no wrongdoing, but CICIG and the Guatemalan people were suspect.

So, protests continued with the simple phrase “Renuncia Ya” (Resign Already) at the heart of it all. For nineteen weeks, concerned citizens protested, employing only nonviolent protest tactics, even going to far as to offer flowers to police. Then the unthinkable happened, on August 31st, the 132 members of Congress who were present for voting (out of 158 members total), voted unanimously to rescind the presidential immunity, which had formerly protected Perez from prosecution. In a country where lawlessness abounds because people are not held accountable for their actions, 132 members of Congress and tens of thousands of protesters decided that Guatemala needed to change.

Then, on September 2nd, the embattled president, Otto Pérez Molina, finally resigned.

Now, with the former Vice President and President in jail, the world’s eyes are watching what Guatemala does next. In Guatemala’s first round of voting for a new president, which occurred on September 6, Jimmy Morales, a comedian with no political experience won the first round. (This election had already been scheduled before Molina’s resignation.) A run-off election will occur on October 25, between Morales and former first lady Sandra Torres. Morales is running on a simple platform of “Not corrupt, not a thief” and is touting his position as an outsider, while Torres is reminding the country of the social work she did as First Lady. There are lingering questions about each of their abilities to continue to rid the government of corruption.

The battle against corruption is far from won, but today, Guatemala’s Independence Day, is a day to celebrate the hard work done by men and women over the past 365 days to ensure a better future for the citizens of Guatemala. Guatemala has been referred to as one of the worst places in the world to be a child, but the progress made in the past few months makes me hopeful that the impoverished, indigenous children I worked with in Guatemala might grow up to live in a country whose government strives to serve them and their families.

Egypt, Qatar, others add ground troops to Yemen mess

Arsenal Bolt: Quick updates on the news stories we’re following.

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The Economist – “A downward spiral”:

More troops have poured in since the [Sept. 4 2015] attack [on coalition troops]. Saudi Arabia dispatched more elite forces to join the 3,000-strong coalition force already on the ground, while Qatar, hitherto only participating in air operations, has sent 1,000 soldiers. Egypt, which has long warned of the folly of putting boots on the ground given its disastrous intervention in the 1960s, this week sent in 800 men. Sudanese troops are reportedly waiting to be shipped out of Khartoum. Bahrain’s King Hamad bin Isa al-Khalifa said his two sons will join the battle.
[…]
Quashing the Shia Houthis is nigh on impossible. Gulf officials and media talk bombastically of preparations to take back Sana’a from them and reinstall Abd Rabbo Mansour Hadi as president (the Houthis drove him out of the country in March). But Yemen has long been treacherous territory for foreign invaders, and Gulf armies are relatively inexperienced.

Since committing ground troops in August, the coalition has taken control of Aden, the southern port city, and is advancing on Taiz. But it is struggling in Maarib, the gateway to Sana’a, where the extra troops, backed by armoured vehicles and missile launchers, are said to be massing. The fighting will only get harder since the Houthis’ remaining strongholds are in mountainous redoubts.

[…] a rising generation of young, ambitious Gulf royals appears unwilling to pare back their newfound military adventurism.

 
Related Reading: “Saudi Arabia and the US: More military misfires” — my August 13, 2015 op-ed with Stephan Richter for Al Jazeera English.