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Student Aid Increases Pass the HouseJuly 12, 2007—The College Cost Reduction Act of 2007 (H.R. 2669) passed the House of Representatives July 11, 2007, by a vote of 273-149. According to the House Education and Labor Committee website, the changes will provide “the single largest increase in college aid since the GI bill.” Funding for the measure will come from reduced subsidies to lenders, not from any new taxes thereby complying with the Pay-Go rules on any spending increases. Some of the ways that the bill will make college more affordable are cutting interest rates in half on all subsizdized loans over the next five years, limiting to payments to no more than 15% of discretionary income, and allowing loan forgiveness after 20 years. Pell Grants and other tuition subsidies will also get a boost. The maximum Pell grant will be increased by at least $500 over the next five years meaning the maxiumum grant will reach $5,200 by 2011. Tuition assistance for undergradute teaching students who promise to serve in a low-income school or high need subject area will become available. New loan forgiveness for public servants such as first responders, law enforcement, public defenders and prosecutors. Included are other provisions to help first generation college students and a $500 million investment in Historically Black Colleges and Institustions, Hispanic serving institutions, tribally-controlled colleges and universities, and Alaska and Hawaiian native Institutions. | ||||
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