Malin Questions Nixon's Proposal To Restructure Student Aid Plans
President Nixon's proposal to restructure the federal student assistance program may prove to be "unwise," Seamus .. Malin '62, director of the Harvard Financial Aid, Office, said yesterday.
Nixon's proposal-which he made Thursday-aims at providing funds for students in families with incomes of less than $10,000 a year. The money would be distributed through a combination of federal loans and grants.
Under the present system, federally-subsidized loans are available to students from families with incomes up to $15,000 a year. Nixon would lower this limit to $10,000 a year and use the money saved in the $10,000-$15,000 group to increase loans and grants at the lower income levels.
Although Malin said he approves of the increase in assistance funds, he voiced fear that by lowering the eligibility income for loans to $10,000, the program will "clearly hit the middle-income groups." Because of the increased difficulty in obtaining loans, Malin said that Harvard might suffer "a little bit of attrition to other colleges for financial reasons," adding that, "It's the middle-income kids who are being squeezed."
The new program will raise the limit of federal loans from $1500 to $2500 a year, and increase the payment period from 10 to 20 years.
The program would also create a National Student Loan Association to buy student loans from banks and sell them on the private market-thus replenishing the pool of loan money.
The proposal is still in the bill-drafting stage and will be introduced to Congress as the Higher Education Opportunity Act of 1970, later this year.