WASHINGTON (July 11, 2007) – Congressman Chandler joined his colleagues today to pass H.R. 2669, the College Cost Reduction Act of 2007, which provides the single largest investment in college financial aid – about $18 billion over the next five years – since the GI Bill was enacted in 1944. The bill will now move to the Senate for consideration.
“Everyone should have the opportunity to get a college education,” said Congressman Chandler. “Unfortunately, with college tuition reaching record highs, many students find that they are unable to afford higher education. This bill will make college more affordable, thus strengthening the American workforce and increasing U.S. competitiveness.”
Earlier this year, the House passed the College Student Relief Act of 2007 (H.R. 5), which cut interest rates for student loans in half from 6.8 percent to 3.4 percent. The College cost Reduction Act expands upon H.R. 5, providing a more comprehensive approach to ensuring college affordability.
H.R. 2669 lowers college costs for low and middle income individuals by cutting interest rates on subsidized student loans, increasing federal loan limits, guaranteeing that borrowers will not have to pay more than 15 percent of their discretionary income in loan repayments, and increasing the maximum Pell Grant scholarship by at least $500 over the next five years. Roughly 5.5 million students would benefit from this increase.
“In Kentucky, this bill will mean $202 million more in student loan and Pell Grant aid to students and families over the next five years, benefiting an additional 93,000 Kentucky students,” said Chandler. “In addition, this bill will save each Kentucky student over $4,000 in interest over the life of a loan for a 4-year school.”
The bill also includes loan forgiveness programs for those serving in the public sector, such as law enforcement officers, firefighters, nurses, public defenders, prosecutors, and educators. Furthermore, by cutting excess subsidies paid to lenders in the student loan industry, the College Cost Reduction Act will benefit millions of students and families at no new cost to taxpayers.
“By passing this bipartisan legislation, the House is continuing to invest in both our children’s future and the economic security of our nation for years to come,” said Chandler.
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