WHAT IS THE PASSPORT TO THE MIDDLE CLASS?

The Passport to the Middle Class Initiative increases college access and affordability. The initiative includes two bills: 

• Sen. Landrieu’s Middle Class CHANCE Act will restore the original purchasing power of the Pell Grant award by increasing it to $8,900 from $5,730, to combat increasing college costs. The current maximum Pell award for next year will cover, on average, only one-third of the cost of a public four-year college in Louisiana, the smallest share of college costs since the start of the Pell program in 1972. 
• The Bank on Students Emergency Loan Refinancing Act aims to decrease the interest rate on student loans. The current rate is 6 percent, but under my proposal, the rate would be lowered to 3.6 percent. Louisiana’s average student loan debt is $22,000. Under the current interest rate, the student would pay $20,522 in interest in 25 years. Under the proposed interest rate, that same student would pay $12,329 in interest in 25 years, saving $8,193. Click here to use a Student Loan Savings Calculator to see how much you could save under the Bank on Students Emergency Loan Refinancing Act.

WHY IS THIS IMPORTANT?

In Louisiana, the higher education budget has been cut $700 million in the last five years, while college tuition and fees have increased by nearly 40 percent. State funding has declined by 30 percent, while full-time enrollment has increased by 62 percent.  Since the state has withdrawn funding for higher education, students are faced with increased tuition, which requires students and their families to take on more debt.

This initiative would allow responsible student loan borrowers in Louisiana and across the country. There are approximately 600,000 borrowers in Louisiana who would save an average of $22,000 over the life of the loan by passing the Passport to the Middle Class Initiative. A basic American principle is when you work hard and play by the rules, you deserve a fair shot to build a prosperous future and earn a Passport to the Middle Class.