House Has Taken Steps to Increase Financial Aid and Lower Costs

Tuesday, December 1, 2009

Washington, D.C. – Congresswoman Dina Titus of Nevada’s Third District highlighted critical steps the House of Representatives has taken to reduce the financial burden on Nevada’s students seeking a higher education.  Today, the Project on Student Debt released a report, “Student Debt and the Class of 2008,” providing state-by-state data on the amount of debt college students amassed.  Nevada is the ninth ranked lowest-debt state, with an average debt of $17,921.  For more information from the report, click here.

“While the debt facing Nevada’s college students is lower than most states, we must continue to take steps that will make a college education more affordable and accessible,” Congresswoman Titus said.  “A higher education is vital to the future success of our nation’s young adults, and in order to attract good jobs of tomorrow to Nevada, we must have an educated workforce that is prepared to get the job done.  The actions the House has taken this year will go a long way toward lowering the cost of college and reducing the burden on our students and their families.”

So far this year, the House of Representatives has taken a number of steps to bring down the cost of a college education and reduce the amount of debt students and their families face.  In September, the House passed the single largest investment in aid to help students and families pay for college.  The Student Aid and Fiscal Responsibility Act reforms the federal student loan system, saving taxpayers $87 billion.  Of that savings, $10 billion goes toward deficit reduction and $77 billion goes toward making college more affordable through investments in Pell Grants, college access and completion support programs, and community colleges.  The bill also provides Nevada school districts with more than $25 million over two years for school modernization, renovation, and repairs.

On August 1, veterans began receiving college benefits under the new G.I. Bill for the 21st Century.  An estimated 2.1 million members of the military who have served on active duty since September 11, 2001, including activated reservists and members of the National Guard, will be eligible for up to four years of education benefits, including stipends for housing and books.  Earlier this year, Congress extended those college benefits to all children of service members who have died on active duty since September 11, 2001.

On July 1, a number of new benefits took effect to make college more affordable.  Interest rates on subsidized federal student loans decreased from 6 percent to 5.6 percent.  This was the second of four annual cuts to this rate, and it will continue to drop until it reaches 3.4 percent in 2011.  The maximum Pell Grant for the 2009-2010 school year increased by more than $600 to $5,350, and under the Income-Based Repayment program, borrowers’ monthly loan payments can be capped at 15 percent of their discretionary income.

Finally, as part of the American Recovery and Reinvestment Act passed by Congress in February, more than $25 million in Pell Grants have been awarded to students attending schools in Nevada.

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Tags: education