At Temple University, Congressman Joe Sestak (PA-07) partnered up with the U.S Department of Education and hosted a statewide “webinar” for dozens of colleges and universities across America, focusing on the future transition to direct student loan program.On the session held Nov. 2, the Congressman discussed his support for this change and described the new effects it would have on students and families.
The webinar opened with the Congressman’s remarks describing the importance of this new transition and he gave a presentation highlighting the process for the expected change to direct loans and detailing federal assistance available to schools.
As of July 1, 2010, all federal student loans will be originated through the direct loan program in which all students are entitled to low-cost federal college loans, in any economy.
The new program also prevents the administrative problems experienced recently by other government programs. According to the Congressional Budget Office, the changing over to direct loans enclosed in the legislation will save $87 billion.
“This transformation saves the government money, which will be invested in more Pell grants to send more Americans to college, while making student loans more secure,” Congressman Sestak said.
Financial aid representatives from about a dozen schools including LaSalle University, Cheyney University and Widner University attended the event at Temple’s Fox School of Business and Management.
Dozens more listened by phone and followed the presentations by Congressman Sestak and the Department of Education online.
“I am a fervent believer in good government and that’s what this webinar is all about,” Congressman Sestak said.
“Pennsylvania schools in particular may need assistance, because of the role third parties have played up to this point in aiding the loan origination, funding, and servicing processes.”
The current program, which includes government subsidies and loan guarantees for private leaders, is expected to be fully replaced by direct lending by the next school year.
Congressman Sestak stated at the event:
“I look forward to continuing to work with schools and the Department to ensure students and their families receive the aid they deserve.”
Congressman Joe Sestak was born and raised in Delaware County and served in the Navy for 31 years, and is now acting as the Representative from the 7th District of Pennsylvania.
He served as President Clinton’s Director for Defense Policy at the National Security Council in the White House, and obtained a Ph.D. in Political Economy and Government from Harvard University.
After 9/11, the Congressman was the first Director of Deep Blue, the Navy’s anti-terrorism unit that created tactical and operations policies for the Global War on Terrorism.
According to the office of the House Historian, Congressman Sestak is the highest-ranking former military officer ever elected to the U.S. Congress.
Vicky Hoover is a fourth-year student majoring in liberal studies and minoring in journalism and education. She can be reached at VH608753@wcupa.edu.