• Sunday, November 8, 2009
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Congress May Require Colleges to Repay Loans for Students Called to Military Service

Washington — While the Senate was preparing to pass a much-heralded GI bill on Thursday, committees in both chambers of Congress were quietly considering a veterans-benefits bill that is far less popular with colleges.

The legislation, which is supported by veterans groups, would require colleges to refund loans and out-of-pocket costs to students who are called to active military duty in the middle of a semester — and to give students the right to sue colleges that fail to do so.

College lobbyists say the requirement would conflict with existing rules and would be difficult to carry out. On Thursday the American Council on Education and several other associations sent a letter voicing concerns about the bill to the Senate Committee on Veterans Affairs. The letter suggests that the federal government discharge the loans, rather than require colleges to repay them.

“It’s kind of outrageous to expect institutions to repay loans” that were taken out by their students, said David S. Baime, vice president for government relations at the American Association of Community Colleges. “If a student took a loan out, it’s their responsibility.”

The groups are also unhappy with a provision that would require colleges to re-enroll veterans at the same academic status they held when they departed. The groups say most institutions already do so, but want to be able to make the decisions themselves, on a case-by-case basis.

Patrick Campbell, legislative director for the Iraq and Afghanistan Veterans of America, said the requirements were a matter of fairness. He said he had heard many horror stories from veterans who struggled to get refunds or to re-enroll at their original status.

“Deploying students are being put in a worse position because of their service,” he said. “When veterans come home and their schools make them jump through hoops, some students will not go back.” —Kelly Field

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