Gillibrand Votes for the Largest Increase in College Aid since the G.I. Bill

Press Release

Gillibrand Votes for the Largest Increase in College Aid since the G.I. Bill

Last week, Representative Kirsten Gillibrand voted in favor of the bi-partisan College Cost Reduction Act of 2007 [H.R. 2669]. This bipartisan bill is the largest investment in college financial aid since the 1944 GI Bill.

"This legislation will help Upstate New York families pay for college. The College Cost Reduction Act is a prime example of the investments our country should be making to keep the United States as the world's leader in educating our young people," said Congresswoman Gillibrand.

H.R. 2669 boosts college financial aid by about $18 billion over the next five years, and includes the following provisions:

* Increases the maximum value of the Pell Grant scholarship by $500 over the next five years. Over 420,000 New Yorkers would benefit from a $500 increase in the Pell Grant

* Cuts interest rates in half- from 6.8% to 3.4%- for students with need-based student loans. Once fully phased-in, this would save the typical student borrower in New York $4,570. In New York, students with need-based scholarships graduate with an average of $14,276 of debt

* Prevents student borrowers from facing unmanageable levels of federal student debt by guaranteeing that borrowers will never have to spend more than 15 percent of their yearly discretionary income on loan repayments

* Provides tuition assistance for undergraduate students who agree to teach in our country's public schools

* Provides loan forgiveness for public servants, including police officers, firefighters, first responders, public defenders, prosecutors, nurses, early childhood educators, and librarians

"I am pleased that this bill encourages and rewards students who decide to go into public service. Loan forgiveness for our community's public servants show the Congress' commitment for promoting these important careers," added Congresswoman Gillibrand.

By reducing excessive federal subsidies paid to lenders in the college loan industry, the College Cost Reduction Act of 2007 will not cost taxpayers anything. In addition, the legislation reduces the federal budget deficit by nearly $1 billion.

Congresswoman Gillibrand has been an advocate in the Congress for helping Upstate New York's employers recruit and maintain America's best and brightest students. Earlier this year, she introduced and passed legislation that would create a scholarship program for undergraduate students in science, technology, engineering or mathematics.

There are nearly 30,000 undergraduate and graduate students in New York's Twentieth Congressional District. Over the past four years, tuition in New York has increased by 28.1%, and the average tuition at a four-year university was $5,138 for the 2006-2007 school year.

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