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. Overall, it found that "student debt continued to rise even as it got harder for recent graduates to find jobs, and that debt levels vary considerably from state to state and college to college. Nationwide, average debt for graduating seniors with loans rose from $18,650 in 2004 to $23,200 in 2008, or about six percent per year. State averages for debt at graduation in 2008 ranged from highs near $30,000 to a low of $13,000. High-debt states are concentrated in the Northeast, while low-debt states are mostly in the West. At the college level, average debt varied even more, from $5,000 to $106,000. Colleges with higher tuition tend to have higher average debt, but there are many examples of high tuition and low average debt, and vice versa."
As Committee Member, Dina Titus of Nevada, says, “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.
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. 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, the maximum Pell Grant Award was increased by $500 to $5,350 for 2009-2010 and to $5,550 for 2010-2011.
As Committee Member, Dina Titus of Nevada, says, “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.
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. 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, the maximum Pell Grant Award was increased by $500 to $5,350 for 2009-2010 and to $5,550 for 2010-2011.
