Lobbyists for the organizations say the White House Office of Management and Budget decided this week it would propose no money for Perkins Loans, created in 1958. OMB declined to comment, and the budget will not be released formally until Feb. 3. Through praising the administration for boosting other student aid, the groups say the increases should not come at the expense of the Perkins Loans.
Most needy students get an aid package that contains something from each program.
The interest rate is fixed at 5 percent. The groups say they are particularly angry because the Education Department promised in September it would leave the program alone. I just find it unacceptable that they're now backing away from those promises. He also has several new educational projects he wants to announce in his State of the Union speech Jan. 27. Among them is an early intervention program for poor black and Hispanic students to stay in high school and go on to college.