(This is a guest blog post by Rep. Tim Bishop, Education and Labor Committee Member.)
An article in Newsday recently declared that the “recession is pushing college out of reach.” That’s a sobering thought—particularly because a college education can be a key path to a stronger financial future for many Americans.
Current statistics on costs at local colleges and universities help explain why this is the case. At Stony Brook University on Long Island, the average debt incurred by 2007 graduates had increased by 9% over the previous year. That’s nearly three times the annual cost of living adjustment. Completing college in New York or any other state is an increasingly expensive proposition: the average student graduates with nearly $22,000 in debt. With the current economic downturn, a college degree may appear even further out of reach for many Americans.
As a former college administrator, I understand the importance of college affordability for American students. I am heartened by the steps that President Obama and my Congressional colleagues have taken to date, including the passage of the American Recovery and Reinvestment Act of 2009. This legislation includes billions of dollars to repair and construct school facilities and improve services for the children most in need, which will better prepare our next generation for the challenges of college and the globalized economy.
On July 1st, some new benefits for students will go into effect thanks to the College Cost Reduction and Access Act. On July 1, the interest rate on need-based federal student loans will be reduced to 5.6% down from the current 6% (rates will drop even further to 3.4% by 2011). The maximum Pell Grant scholarship will increase to $5,350 which will reduce the amount that students need to borrow in the first place. In addition, monthly loan payments may be capped at 15% of discretionary income, so student loans will become less of a burden on young people getting started in their careers.
Alex, a student on Long Island who will graduate with a whopping $70,000 in debt, puts it well: “Higher education shouldn’t come at the price of indebtedness for life.”
That’s a goal for our college graduates on which I hope we all can agree.
We can get there by increasing grant aid from all sources (federal, state, and institutional), making it less expensive for students and families to borrow, and working with institutions to implement best practices to hold down costs.
An article in Newsday recently declared that the “recession is pushing college out of reach.” That’s a sobering thought—particularly because a college education can be a key path to a stronger financial future for many Americans.Current statistics on costs at local colleges and universities help explain why this is the case. At Stony Brook University on Long Island, the average debt incurred by 2007 graduates had increased by 9% over the previous year. That’s nearly three times the annual cost of living adjustment. Completing college in New York or any other state is an increasingly expensive proposition: the average student graduates with nearly $22,000 in debt. With the current economic downturn, a college degree may appear even further out of reach for many Americans.
As a former college administrator, I understand the importance of college affordability for American students. I am heartened by the steps that President Obama and my Congressional colleagues have taken to date, including the passage of the American Recovery and Reinvestment Act of 2009. This legislation includes billions of dollars to repair and construct school facilities and improve services for the children most in need, which will better prepare our next generation for the challenges of college and the globalized economy.
On July 1st, some new benefits for students will go into effect thanks to the College Cost Reduction and Access Act. On July 1, the interest rate on need-based federal student loans will be reduced to 5.6% down from the current 6% (rates will drop even further to 3.4% by 2011). The maximum Pell Grant scholarship will increase to $5,350 which will reduce the amount that students need to borrow in the first place. In addition, monthly loan payments may be capped at 15% of discretionary income, so student loans will become less of a burden on young people getting started in their careers.
Alex, a student on Long Island who will graduate with a whopping $70,000 in debt, puts it well: “Higher education shouldn’t come at the price of indebtedness for life.”
That’s a goal for our college graduates on which I hope we all can agree.
We can get there by increasing grant aid from all sources (federal, state, and institutional), making it less expensive for students and families to borrow, and working with institutions to implement best practices to hold down costs.
