More Federal Money for College?

12 Jul 2007

College!I know this is kinda off topic, but I figured I’d post it since it’s rather relevant to me (and many of my fellow Mercerians). HR 2269, the College Cost Reduction Act of 2007, has just passed the House with a vote of 273-149. The bill promises to invest around $18 billion dollars into the college funding program, making education much more affordable to many Americans. Some changes are to include:

  • Increase in maximum Pell Grand award
  • Interest rates cut from 6.8% to 3.4%
  • Up-front tuition assistance to students committing to teach in public schools in high-poverty communities
  • Loan forgiveness for public servants after ten years
  • Guaranteeing that borrowers will not have to spend more than 15% of their “discretionary income” on repayments
  • Investments of $500 million into minority institutions

This is really a great thing, especially for me with the looming specter of repayments in my near future. I am most excited about the reduction in interest rates, which will result in significant payment reductions (even though I plan on paying off my loans ASAP once I graduate).

The senate is expected to vote on the college funding issue sometime this month, with a combined bill being being created shortly thereafter. Apparently the White House opposed (and almost vetoed) this bill… I’m really disliking this administration more and more. Here’s a great quote from Chairman Miller:

“You could have written a motion another way, you deliberately wrote it this way so you could kill this bill. What is it you don’t like about this bill? You don’t like the fact that while you were in power after years of flat lining the Pell Grant, we we’ve finally given them the biggest increase in decades for the poorest kids in this country. You don’t like that so you want to kill the bill. You don’t like the fact that were going to take 5 million middle class kids and extend to them a loan thats interest rate is cut in half? While their families are struggling to get them through college? They’re making sacrifices every year? You’re going to do this? You’re going to kill this bill? Are you proud? Are you proud of this amendment, that you are going to try to kill this bill? Say it louder.”

You can find more info here and here.