Constituent Services
Legislation SearchContact InformationWashington, DC Detroit Lakes Marshall Montevideo Red Lake Falls Redwood Falls Willmar |
MORE AFFORDABLE Cutting Interest Rates on College Loans in Half Republican Record: Ø
This past
February, the Republican Congress enacted a Raid on Student Aid, slashing
student aid programs by a total of $12 billion -- making college even less
affordable for millions of American families.
Ø
Under
Republican Leadership, interest rates on new college loans for students
and parents have jumped by almost 2 percentage points. Democrats’ College Affordability Package: p
Cuts the
interest rate on new student loans in half – from 6.8 percent to 3.4
percent. p
Cuts the
interest rate on new parent loans in half – from 8.5 percent to 4.25
percent. p
Saves the
typical undergraduate student borrower, with $17,500 in debt, a total of
$5,600 over the life of their loans. Expanding
Tax Incentives to Republican Record: Ø
Average
annual tuition and fees at a 4-year public college have jumped by 57
percent since 2000-2001 – having now reached $5,491. Ø
Average
annual tuition and fees at a 4-year private college have jumped by 32
percent since 2000-2001 – having now reached $21,235.
Democrats’ College Affordability Package: p
Expands
and simplifies tax credits for college tuition by combining the HOPE
credit and the Lifetime Learning credit for undergraduate students and
significantly increasing the maximum credit.
p
Specifically,
creates a tax credit of 100% of tuition up to $3,000, the equivalent of a
$12,000 deduction for middle-income families in the 25% tax rate bracket. p
This tax
credit would cover 55 percent of the average tuition and fees at a 4-year
public college; today, the maximum tax credit covers only 30 percent.
Boosting
the Maximum Pell Grant by 25 Percent - To $5,100
Republican
Record: Ø
The
Republican Congress has frozen the maximum Pell Grant at $4,050 for
four straight years – despite the rise in college tuition. Ø
The
maximum Pell Grant is now worth $900 less, in real terms, than in
1975-1976. Ø
In 1976,
the maximum Pell Grant covered 72 percent of the costs of a 4-year public
college; today, the maximum Pell Grant only covers 32 percent of those
costs. Democrats’
College Affordability Package: p
Boosts
the maximum Pell Grant to $5,100, helping to make college more affordable
for the more than five million students receiving Pell Grants.
|
|