Perkins Loan Program Expired at Midnight, Portman Proposed Ending Perkins Program as Bush Budget Director

COLUMBUS – U.S. Sen. Rob Portman has fulfilled his long-time goal of eliminating the Federal Perkins Loan Program that more than 25,000 Ohio students depend on. The program expired at midnight as Congressional Republicans refused to extend it. But it is Portman who first proposed eliminating funding for the Perkins Loan Fund in 2007 as Budget Director for President George W. Bush.

“Cutting loan programs for Ohio students while continuing handouts to millionaires and corporations is a perfect example of just how out of touch Senator Portman is with the struggles of working families,” said Ohio Democratic Party spokeswoman Jennifer Donohue. “Rising college costs are hitting Ohio families hard enough as it is, they can’t afford to keep paying for Senator Portman’s handouts to millionaires and corporations at their expense.”

Trailing in the polls and worried about his re-election campaign, Portman attempted to cover his tracks this week by signing on to a Senate Resolution supporting the Perkins program – even taking to the Senate floor to talk about how important Perkins loans are to Ohio students. But, Portman failed to mention that eliminating Perkins was his idea:

• As Director of the White House Office of Management and Budget in 2007, Portman Proposed Eliminating the Perkins Loan Revolving Fund: “Eligible Perkins loans would continue to be cancelled but no appropriations would be made to replenish the institutional revolving funds. This program termination is coupled with the Budget’s proposal to eliminate the Perkins loan program and recall the Federal portion of these revolving funds.” [Office Of Management And Budget, February 2007]

• Portman Himself Even Testified at Congressional Hearings Defending his Proposal to Eliminate Perkins: “BISHOP: Mr. Portman, thank you for your testimony, and thank you for your endurance. […] And the Perkins revolving fund, the president requests that it be recalled. And if I’m reading the charts correctly, that’s a $419 million cut for fiscal ’08, also bringing that to zero.” [Political Transcript Wire, 2/7/07]

The Perkins program is not the first time Portman has sided with Washington special interests over Ohio students. In 2014 and 2015, Portman voted against allowing Ohioans to refinance student debt at lower rates – choosing instead to protect tax cuts for millionaires.  [CQ, 4/15/15; S.Con.Res. 11, Vote 149, 4/15/15; CQ, 6/11/14; S. 2432, Vote 185, 6/11/14].

By contrast, former Ohio Governor and U.S. Senate candidate Ted Strickland froze college tuition when he was Governor and made college free to veterans — boosting public university enrollment in Ohio by 20 percent. [Ohio General Assembly, H.B. 199, Signed 6/30/07; Associated Press, Toledo Blade, 7/1/07; Office Of Governor Ted Strickland Press Release, 7/8/08; Ohio State University, Accessed 5/8/15; University System Of Ohio, Headcount Enrollment, December 2014]

How Many Ohio Students Depend on Perkins?

25,472 Ohio students received more than $45 million in Perkins loans for the 2013-214 school year. Students already enrolled in Perkins and those who received their loans before midnight for this semester will not be cut off. But anyone whose loan had not yet come through could be cut off, and new students will not be able to apply for loans for future semesters.

Source: U.S. Department of Education

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