Porter raises alarm on student aid crisis

Reports show that Indiana’s college-going rates have dropped again, dipping to 51.7%. This dip follows critical changes to state financial aid assistance: reducing the amount of individual awards by almost $500 and an overall cut to awards of $78 million. InvestEd, created to provide non-predatory loans to Hoosier students, has also made changes. The quasi-government entity will loan roughly $44 million to students, but only those with credit scores above 750. These changes, combined with the consolidation of payment plans and borrowing caps in the “One Big Ugly Bill,” will drastically impact Hoosier students. 

State Rep. Gregory W. Porter (D-Indianapolis) released the following statement: 

“When we look at the big picture, our students are going to get slammed. Teens feel like college isn’t worth it, and Indiana’s doing nothing to dissuade them. Students don’t want to go into massive debt for a degree only to get a post-grad job that doesn’t cover the cost of living. Indiana’s student aid changes make affording college even more of a daydream. 

“Individual awards were reduced, the appropriation for assistance cut and only students with excellent credit get a state loan. InvestEd is also giving loans to out-of-state and international students. The wealthy and people outside of Indiana get the loans with low interest rates. 

“We’re leaving most students with two options: family wealth or private loans. And the last thing students need is more private loans. Private loans can have interest rates over 15%, trapping students in debt. 

“Frozen tuition helps, but it doesn’t address the fact that tuition is too high. It’s putting lipstick on a pig. We’re not addressing the core issues: high tuition and predatory loans. I plan on offering significant legislation next session to address the student loan crisis and rebalance state assistance.”