Castor Urges President's Signature on Landmark Education Bill to Expand Education Opportunities

Press Release

Castor Urges President's Signature on Landmark Education Bill to Expand Education Opportunities

College Cost Reduction and Access Act makes single largest investment in college aid since GI Bill

Tampa, Sep 7 - U.S. Rep. Kathy Castor (D-FL) today urged President Bush to sign the College Cost Reduction and Access Act of 2007, which makes the single largest investment in college financial aid since the GI Bill of 1944 and helps millions of students and families pay for college at no new cost to taxpayers.

"College students and families will benefit through increases in the Pell Grant and cuts to interest rates on student loans. I also am delighted to reverse cuts made by the U.S. Department of Education to students in the critically acclaimed Upward Bound initiative at the University of South Florida and other Florida universities. I urge the President to sign this legislation into law so that more students can afford to obtain a higher education," said Castor.

The College Cost Reduction and Access Act boosts college aid by roughly $20 billion over the next five years and pays for itself by reducing excessive federal subsidies paid to lenders in the college loan industry. In Florida, the average debt for students after college is more than $18,303. "In America, no young person with a desire to learn should be barred from moving on to college due to financial hurdles - and this Act removes many of those hurdles today," said Castor.

Under the legislation, the maximum value of the Pell Grant scholarship will increase by $1,090 over the next five years, reaching $5,400 by 2012, up from $4,050 in 2006, thus restoring the Pell's purchasing power. Some students will receive an immediate boost of almost $500 in their Pell Grant scholarship as early as the 2008-2009 school year. Roughly 5.5 million low and moderate income students will benefit from this increase.

The legislation improves need-based student loans by cutting interest rates on student loans in half, from 6.8 percent to 3.4 percent over the next four years. A typical student borrower and their family - with $13,800 in need-based student loan debt - will save $4,400 over the life of the loan. About 6.8 million students take out need-based loans each year.

In Florida, the College Cost Reduction and Access Act will increase loan and Pell aid to students and families over the next five years by $1.5 billion. At our four-year public colleges in Florida, 125,475 students take out need-based loans each year, and 300,621 receive the Pell Grant. The typical need-based student loan borrower at four-year public colleges in Florida ends up with a debt of $13,663. Under this legislation, each student would save $4,370 over the life of the loan.

The College Cost Reduction and Access Act also eases the financial burdens that college costs impose on students and families and expands college access for low-income and minority students by:

* Making loan payments more manageable for students;
* Providing tuition assistance for excellent undergraduate students who agree to teach high-need subjects in high-need schools;
* Making a landmark new investment in minority serving institutions, including Historically Black Colleges and Universities and Hispanic Serving Institutions, for critical support services that help recruit and retain students;
* Encouraging and rewarding public service by providing loan forgiveness for college graduates that go into public service professions, such as military officers, first responders, firefighters, nurses, law enforcement officers, prosecutors, early childhood educators, public defenders, librarians, and others; and
* Developing new strategies to help colleges contain costs and making online information on college costs for students and parents more user friendly.

The College Cost Reduction and Access Act combines elements from House and Senate bills that were passed in July. Castor voted the revised bill out of the Rules Committee yesterday. When approved by Congress today, the bill will be presented to the President almost immediately for his signature.

The landmark effort will not only help working families by cutting interest rates and raising the Pell Grant, but it will also help save a federal initiative that has helped low-income Florida students get to college for over 40 years. Upward Bound has helped more than 3,000 low-income students in the Tampa Bay area alone.

The U.S. Department of Education cut federal funding from approximately 100 Upward Bound initiatives nationwide earlier this year, including three major Florida universities: the University of South Florida, Florida A&M University, and the University of Florida.

"The Bush administration slashed federal funding for Upward Bound students even though Upward Bound transitioned high school students to college students in the Tampa Bay area for over 40 years," said Castor. "We will reverse that misguided decision today and begin to discuss how to expand this effort instead of how to end it. Increasing minority enrollment in colleges depends on efforts like Upward Bound. If we can persuade the President to sign this bill, more students will have the opportunity to be successful in college and in their lives."

Students like Jasmyn Hendricks consider their Upward Bound experience as the key to their future. In June, Castor met with Hendricks and other students at Middleton High School in Tampa. Hendricks and Clifton Tyson are students of the Upward Bound program facilitated at the University of South Florida in Castor's District 11. "Jasmyn and Clifton were devastated when they learned that the program that has literally changed their lives, goals and ultimately their future would be discontinued. Jasmyn's eyes welled up with tears, saying that before Upward Bound," said Castor, "I knew I wanted to pursue higher education, but there was no way, said Hendricks." Hendricks considers her Upward Bound program her second family and said that, "There was no money. I just couldn't see a way for me to get to something after high school. Then Upward Bound comes along and introduces us to the fact that there are college scholarships, there are grants. I don't know where I would be without Upward Bound," said Hendricks.

"The costs of higher education have skyrocketed in recent years," said Castor. "Thousands of students in my district like Jasmyn end up with a huge debt or have to forget about college altogether due to the high costs. Many of my neighbors are the first ones in their family to go to college. We must make sure that the transition is as smooth as possible for them. With this new legislation, the doors will be wide open for all to achieve the American Dream. The College Cost Reduction Act is a momentous and historic step in the right direction for higher education in America. It opens the doors for thousands of students where those doors were previously closed. It helps to ensure that families are not penalized for their income or background and gives universities the opportunity to offer additional financial aid to students in need."

Castor represents the 11th Congressional District, which includes parts of Hillsborough, Pinellas and Manatee counties.

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