Congress Passes Bill To Reduce College Costs

Press Release

Congress Passes Bill To Reduce College Costs

Legislation U.S. Rep. Bart Gordon supported to help make college more affordable could become law in the coming days.

"In the face of an increasingly competitive global economy, it is critical to put higher education in reach of more American families," said Gordon. "College costs have risen dramatically in the last few years, but the financial aid available has been stagnant. The College Cost Reduction and Access Act will help reduce costs and put a college diploma in reach of more Tennesseans. I hope the president will sign this bill and join Congress in this effort to restore the American dream."

The conference report to H.R. 2669, the College Cost Reduction and Access Act, was approved by both the House and Senate on Friday (Sept. 7). The president is expected to sign it.

The bill provides the single largest investment in higher education since the 1944 GI Bill, which enabled 7.8 million World War II veterans to participate in education or job training programs.

The College Cost Reduction and Access Act would halve interest rates on subsidized student loans over the next four years, providing assistance to the 6.8 million students who take out need-based federal student loans each year.

According to the U.S. Public Interest Research Group, the average Middle Tennessee State University student starting college this year would save $2,340 over the life of a subsidized student loan. Once the lower interest rates are fully phased in, the average MTSU student starting college in 2011 would save $4,530 over the life of the loan.

At Tennessee Technological University, the average student starting college this year would save $2,120 over the life of a loan. In 2011, the average student starting school would save $4,111 over the life of the loan.

The bill provides a gradual increase to Pell Grant scholarships, raising them by $490 in 2008 and eventually reaching a maximum value of $5,400 in 2012.

Last year, 5,607 MTSU students and 2,201 TTU students received Pell Grants. At Volunteer State Community College, 2,111 students received Pell Grants last year, while 340 Cumberland University students received the assistance.

"Many students couldn't afford college without the assistance they receive through Pell Grants," said Gordon. "More than five million students received a Pell Grant last year, and 74 percent of those students had family incomes below $30,000. By increasing the value of Pell Grants, we're helping the students who are in the most need of financial assistance."

The bill also provides tuition assistance to undergraduate students who commit to teaching in public schools in high-need subject areas, and it includes a loan forgiveness program for undergraduate students who go into public service fields, such as nursing, education and law enforcement.

Source