WASHINGTON (February 1, 2007) – The House of Representatives passed yesterday a $615 million increase in Pell Grants for Fiscal Year 2007. The vote follows an earlier vote in January by the new Democratic controlled Congress that would cut interest rates for student loans in half from 6.8 percent to 3.4 percent.
“I am glad to see the Democrats make good on their promises to cut student loan interest rates and increase funding for Pell Grants, both of which will make higher education more affordable for the students in this country,” said Chandler.
The bill passed yesterday provides $615 million more for Pell Grants than the Fiscal Year 2006 level, a 5% increase. It also increases the maximum Pell Grant award to $4,310, an increase of $260. If signed into law, this will be the first increase in the maximum Pell Grant in four years. Previous budgets proposed by the President decreased funding for Pell Grants and student loan programs.
Representative Chandler and newly elected Congressman John Yarmuth of Louisville were the only two members of the Kentucky delegation to support the measure to increase Pell Grants funding.
Because the 109th Congress failed to pass 9 of 11 annual appropriations bills last fall, the 110th Congress had to act in order to avoid a government shutdown. This bill, known as a Continuing Resolution, funds the federal government through the remainder of FY 2007 which ends on September 30, 2007. It will be considered by the Senate in the coming days and if passed, will be sent to the President for his signature.
“The President will be sending his FY 2008 budget to Congress next week. It is important that the House was able to complete the leftover work on 2007 appropriations, and I’m thrilled that this bill recognizes the importance of higher education.”
On average, Kentucky students are graduating with over $15,000 in college debt.
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