Titus Announces New Programs To Make College More Affordable That Take Effect Today

Press Release

Congresswoman Dina Titus of Nevada's Third District and a member of the House Education and Labor Committee highlighted new benefits that take effect today, July 1, which will make student loans more affordable for our nation's young people. Under the Income-Based Repayment program, borrowers can cap their monthly loan payments based on how much income they earn. This, combined with an increase in the maximum Pell Grant and lower interest rates on need-based student loans, will make higher education more affordable and accessible for Nevada's young people.

"A quality higher education for our nation's young people is critical to their individual ability to compete in a global economy and thus to the future of our nation," Congresswoman Titus said. "The implementation of this new program, along with other steps Congress has taken to lower the cost of a college education, will help our students gain the skills and knowledge they need to become the next generation of leaders."

"By capping student loan payments during these tough economic times and lowering interest rates on student loans, we will ensure that our students have the opportunity to reach for their dreams rather than face a mountain of debt," Titus added.

On July 1, interest rates on subsidized federal student loans will decrease from 6 percent to 5.6 percent. This is the second of four annual cuts to these rates, and it will continue to drop until it reaches 3.4 percent in 2011. Under the Income-Based Repayment program, borrowers' monthly loan payments can be capped at 15 percent of their discretionary income. With funding through the College Cost Reduction and Access Act and the American Recovery and Reinvestment Act, the maximum Pell Grant for the 2009-2010 school year will increase by more than $600 to $5,350.

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