Democratic Lawmakers Announce Landmark Funding Increases Available for Hispanic Serving Institutions
Under the College Cost Reduction and Access Act, Schools Will Begin Receiving Millions of Dollars in Grants by September 30th 

Wednesday, September 24, 2008

WASHINGTON, DC -- As a result of a historic student aid law enacted by the Democratic Congress last year, Hispanic-Serving Institutions across the country will receive millions of dollars in additional federal grants that will begin to be awarded at the end of this month. More than 173 HSIs, which enroll almost half of all Hispanic college students, would be eligible for the funding.

“By making significant investments in Hispanic Serving Institutions, we can help give more Hispanic students the support they need to not only enter college, but stay in school and graduate,” said U.S. Rep. George Miller, Chairman of the Committee on Education and Labor. “A college education continues to be the best path to the middle class. At a time when our economy is in turmoil, it’s in our national interest to do everything we can to help more students earn a college degree and strengthen our workforce.”

“This landmark investment is essential to harnessing the talent of our youngest, and fastest growing population,” said U.S. Rep. Rubén Hinojosa, chair of the Subcommittee on Higher Education, Lifelong Learning and Competitiveness.  “HSIs are only going to grow in their importance for ensuring that our nation continues to have enough college graduates to fill the jobs in our knowledge-based economy given that today twenty percent of our nation’s school children are Hispanic.”   

The law, the College Cost Reduction and Access Act, provides $200 million in competitive grants over the next five years to HSIs. The U.S. Department of Education will start awarding the grants to schools by Thursday, September 30^th.  Priority funding will be given to HSIs that increase the number of low-income students attaining degrees in the fields of science, technology, and math.

Like other minority-serving institutions, HSIs are more likely to offer support services for Hispanic students, such as mentoring, tutoring and counseling programs, than are other institutions. To qualify as a HSI, Hispanic enrollment at an institution must be at least 25 percent of the total student enrollment.

The College Cost Reduction and Access Act was enacted in 2007 and provides the greatest increase in federal student aid since the GI bill, and at no new cost to taxpayers.

In addition to increasing aid for HSIs, the law also boosts the Pell Grant scholarship, cuts interest rates on need-based student loans and more. About 37 percent of Hispanic students receive the Pell Grant scholarship each year. About 25 percent of Hispanic students take out need-based student loans each year.

For more information on these benefits, click here.

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