For the nearly 30,000 undergraduate and graduate students in New York's Twentieth Congressional District, sharp increases in college tuition over the past decade have made the American Dream more difficult to obtain.  In Congress, I am fighting to ensure that college is affordable for all Upstate New York families.   Increasing access to higher education strengthens the middle class and makes America more competitive in the global economy. 

In addition, I want to make sure that college students do not graduate with an unmanageable amount of student loan debt.  Large student loans can delay the completion of a college degree, postpone starting a graduate degree or make a career in public service unobtainable. 

Recently, Congress passed the College Cost Reduction Act of 2007, which boosts college financial aid by $18 billion over the next five years.   The College Cost Reduction Act is the largest increase in college aid since the 1944 G.I. Bill, and is a prime example of the investments our country should be making to keep the United States as the world's leader in educating young people.

The College Cost Reduction Act of 2007 includes the following provisions:

·        Increase 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

·        Cut 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.

·        Prevent 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

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

·        Provide loan forgiveness for public servants, including police officers, firefighters, first responders, prosecutors, nurses, early childhood educators, and public defenders. 

I have also introduced legislation which will make up to $10,000 in college tuition and expenses tax deductible for middle class families.  The College Affordability Tax Relief Act of 2007 will change the tax code to help middle class families by providing a:

• $10,000 tax deduction for families with an income of up to $100,000 
• $6,000 tax deduction for families with an income between $100,001 and $130,000
• $3,000 tax deduction for families with an income between $130,001 and $160,000

The bill also indexes to inflation and will make the tax deduction permanent.  The tax deduction is scheduled to expire at the end of the year and the deduction has not been increased for inflation since 2004.

Below is some information on financial aid.  If you have any questions, I encourage you to contact my office at 202-225-5614.

Financial Aid for Students

This Information Web page, prepared by the Congressional Research Service for Members of Congress, guides students through the process of locating and applying for financial aid. [Updated March 2006]

·                             The basics: getting started

·                             Student aid and where it comes from

·                             Targeted aid for specific groups

·                             Repaying your loans

Start gathering information early.

Free information is readily available from:
High school counselors
College and career school financial aid offices (where you plan to attend)
Local and college libraries
U.S. Department of Education Web page
Other Internet sites (search terms student financial aid OR assistance)

Ask questions: counselors may know if you have exceptional circumstances that affect your eligibility.

Be organized: use calendars to keep on track.

Keep copies of all forms and correspondence: you must reapply for aid each year.

Parents of students: save money long before your child attends college.
College Savings Plan Network (state "Section 529" plans)
FinAid: for Parents
Tax incentives for higher education expenses

Good overviews:
Cash for College
FinAid: The Smart Student Guide to Financial Aid
Financial Aid: You Can Afford It
Looking for Student Aid
Mapping Your Future
Paying for College

Beware of scholarship scams -- don't pay for free information!
Department of Education
Federal Trade Commission

Basic assistance categories:

·                             Financial need-based
Remember that students and their parents are responsible for paying what they can-- financial aid is a supplement, not a substitute, for family resources.

·                             Non need-based
Factors include academic excellence, ethnic background, or organization membership. Corporations may also offer assistance to employees and children.

Federal Student Aid:

·                             Provides nearly 70% of student aid under Loans, Grants and Work/study programs.

·                             Available to all need-based applicants; some loans and competitive scholarships for non need-based.

·                             Free information from the United States Department of Education:

§                                                 Funding Your Education

§                                                 Student Guide

·                             Loans are the most common federal aid and must be repaid when you graduate or leave college.

§                                                 Stafford Loans include:

                                    Federal Family Education Loans (FFEL) from private lenders, such as banks and credit unions, guaranteed by the federal government.

                                               William D. Ford Direct Loans (DL) directly from the federal government.                                                                    

                             Federal PLUS Loans parental loans, not need-based.

§                                                 Perkins Loans for the most needy undergraduates; through participating schools.

·                             Scholarships/grants are mostly need-based and require no repayment:

§                                                 Pell Grants

§                                                 Federal Supplemental Educational Opportunity Grants (FSEOG)

·                             Other grants, scholarships, and fellowships, mostly graduate level: search the Catalog of Federal Domestic Assistance (CFDA) by Beneficiary, such as "Student or Trainee" or "Graduate Student".

·                             "Congressional" scholarships:

§                                                 Named for Member of Congress or other prominent individual (such as Byrd Honors Scholarships, Fulbright fellowships)

§                                                 Merit-based and highly competitive

§                                                 Members of Congress do not play a role in selecting recipients

§                                                 Search by Beneficiary in the Catalog of Federal Domestic Assistance

·                             Work study programs allow you to earn money while in school:

§                                                 Federal Work Study Program: college campus jobs

§                                                 Student Educational Employment: jobs with the federal government

·                             For questions not covered by the Department of Education Web site, call the Federal Student Aid Information Center at 1-800-433-3243.

States offer residents a variety of scholarships, loans, and tuition exemptions.

·                             Check with your state higher education agency and guarantee agency.

·                             Consider prepaid tuition and college savings ("Section 529") plans: College Savings Plans Network.

·                             Search your Internet browser under terms such as student financial aid or assistance AND your state.

Colleges and universities provide some 20% of aid, most need-based. Check University Web sites and the institution's financial aid office when you apply for admission.

Private foundations, corporations, and organizations offer scholarships or grants:
Scholarship Search
FastWeb
Free Scholarship Search
Grants for Individuals
SRN Express

·                             African Americans: Scholarships (UNCF)

·                             Disabled students: HEATH Resource Center [Download a free PDF reader]

·                             Financial Aid for Law School: Law School Admission Council

·                             Foreign students: Financial Aid for International Students

·                             Grants for Minorities: Asians, Blacks, Hispanics, Latinos, Native Americans, and Other Ethnic Groups

·                             Hispanic Americans: Scholarships (HSF)

·                             Medical students: Association of American Medical Colleges

·                             Native Americans: American Indian College Fund

·                             Study abroad (for U.S. and non-U.S. citizens): International Education Financial Aid

·                             Veterans: Education Benefits

Interested in public service?

Federal assistance programs seek to encourage people to work in geographic areas or professions where there's a particular need (such as doctors in underserved areas); encourage underrepresented groups to enter a particular profession; and provide aid in exchange for services provided (such as military service).

·                             AmeriCorps
Volunteers who complete one year of service receive an education award for current higher education expenses or to repay student loans.

·                             Army Continuing Education System
Additional benefits for Army personnel.

·                             Bureau of Health Professions
Scholarships and loans to needy health profession students from disadvantaged backgrounds.

·                             e-Scholar
Scholarships, grants, fellowships, internships, and cooperative education with federal agencies.

·                             Indian Health Service
Scholarships for American Indian/Alaskan Native health profession students and loan repayment for persons working in IHS facilities.

·                             Military academies:
United States Air Force Academy
United States Coast Guard Academy
United States Merchant Marine Academy
United States Military Academy
United States Naval Academy

·                             National Health Service Corps
Scholarships and loan repayment for health profession students who agree to work in underserved areas.

·                             Nursing Scholarships
Offered in exchange for two years of service in areas with critical nursing shortages.

·                             Reserve Officers Training Corps (ROTC)
For students who want to be commissioned as officers after graduating from college.
United States Air Force ROTC
United States Army ROTC
United States Navy ROTC

Aid for private K-12 education: No direct federal assistance, check with schools themselves:

·                             Coverdell Education Savings Accounts: for elementary and secondary school expenses as well as higher education.

·                             Children's Scholarship Fund: partial tuition assistance to low-income students.

After college, the federal government has ways to help you repay your loans.

·                             Eligibility depends upon the type of loan, when it was made, and whether it's in default. Check with your loan officer to find out if you qualify.

·                             Loan Consolidation: combine your federal loans into a single loan with one monthly payment.

·                             Sometimes loans may be canceled in exchange for public service.
Teachers: Cancellation/Deferment Options
Health professions: National Health Service Corps
Federal employees: Federal Student Loan Repayment Program

·                             If you are having problems with your loan and all other approaches fail, contact the Department of Education's Office of the Ombudsman.

States, schools, and some private employers provide help in repaying loans in exchange for public service.

·                             Law school graduates: State Loan Repayment and Forgiveness Programs

·                             Medical school graduates: State Loan Repayment Program