The Fairness for America's Soldiers in Higher Education Act of 2003 (S. 863), which would "amend the Higher Education Act of 1965 to allow soldiers to serve their country without being disadvantaged financially by Federal student aid programs," was introduced April 10 by Sen. John Edwards (D-N.C.).
Under the bill, "a student who withdraws from an institution of higher education to serve on active duty during a war or national emergency shall not be required to repay any grant assistance that is otherwise required to be repayed" under Section 484B(b)(2) of the HEA.
According to a fact sheet on this legislation, Edwards proposes waiving interest on student loans for soldiers deployed on active duty.
"Nearly one-quarter of guardsmen and reservists are college students, and many more are recent graduates," the fact sheet notes. "Because interest still accrues during service, many Guardsmen and Reservists return home to heavy debt."
"For somebody with an average size loan of $17,000, this can add up to as much as $1,400 in interest a year. That's not right," Edwards said when introducing the bill. "No one should return to civilian life in deep debt because they took time off to serve their country. We should waive the interest on these federal loans."
S. 863 would also make permanent the temporary policy relieving students from financial penalties if they withdraw from school because they are mobilized.
The bill was referred to the Senate Committee on Health, Education, Labor, and Pensions.
Posted April 17, 2003 on www.NASFAA.org, the Web Site of the
National Association of Student Financial Aid Administrators (NASFAA).
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