Dorgan Says Higher Education Bill Will Make College Affordable for More North Dakotans

Press Release

DORGAN SAYS HIGHER EDUCATION BILL WILL MAKE COLLEGE AFFORDABLE FOR MORE NORTH DAKOTANS

U.S. Senator Byron Dorgan (D-ND) said a bill signed by President Bush on Thursday will bring college within reach of thousands of middle-class and low-income families in North Dakota and across the nation.

"American families have watched the cost of college skyrocket for years. This legislation will finally tip the scales back toward higher education that is affordable for everyone," Dorgan said.

The higher education reconciliation bill is the largest investment in higher education since the 1944 G.I. Bill. Dorgan said the legislation will give a boost to families who are struggling to afford the rising cost of college. Between 2000 and 2005, the average cost of attending a four-year public college in North Dakota increased 53 percent. During the same period, median household income in the state rose only 16 percent. Seventy-three percent of seniors graduating from a public college in North Dakota leave with some debt. The average amount is $22,682, the third-highest in the nation.

Key provisions in the bill include:

• Increases the maximum Pell Grant to $5,400 by 2012. The change will bring an additional $57.4 million in need-based grant aid to North Dakota students over the next five years.

• Cuts the interest rate on student loans subsidized by the government from 6.8 to 3.4 percent. For a typical borrower in North Dakota who qualifies for $13,800 in need-based student aid, this change will save $4,400 over the life of the loan.

• Caps monthly payments at 15 percent of discretionary income. This change will help keep loan repayments down for low- and middle-income college graduates.

• Increases the amount of income that is sheltered from the financial aid process. This change will allow more North Dakotans to qualify for need-based aid. An estimated 28 percent of the median family income is currently needed to pay for one year at a public institution in the state.

• Invests an additional $510 million in minority-serving institutions. This increase in funding will direct more resources to North Dakota's tribal colleges.

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