Braley Introduces Final Piece of His College Affordability Plan

Congressman’s proposal provides small grants to current students at risk of dropping out of college due to financial need

Washington, D.C. – Rep.  Bruce Braley (IA-01) today continued to roll out his College Affordability Plan by introducing legislation to provide current college students at risk of dropping out with a small amount of short-term aid to help them finish their education.  

“We have too many students with only a year or two of college remaining that drop out due to short-term financial struggles and wind up with no diploma but significant debt,” Braley said. “My hope is that this grant program can help bridge that short-term gap and help preserve the educational goals of current students.”

Many students begin their college career on sound financial footing but are then unable to finish their degree because of worsening or unexpected financial problems. Many of these students drop out—even in their final year of school—leaving them with high debt and no degree. The Helping College Students Cross the Finish Line Act would:

·         Create a program providing tuition retention grants to college students near graduation who are in danger of dropping out of school due to financial reasons

o   These small grant awards of up to $1000 would be given to cover the tuition a student is unable to pay, or supplement other financial aid to help the student stay in school

o   Students receiving the grant awards must be identified as being in good academic standing, and in danger of dropping out because they can’t pay their tuition

Earlier this week, Braley unveiled the outline of his College Affordability Plan which contains four central components to help students, graduates and parents deal with rising tuition costs and growing student loan debt. The plan includes tax incentives, a grant program for current college students facing financial hardship, and a bill allowing students to refinance their loans at lower market rates.

Yesterday, Braley introduced legislation designed to help students and parents manage rising tuition costs, as well as provide relief to those facing significant student loan interest payments.  

After asking for and receiving hundreds of stories about Iowans’ experiences attaining and paying back student loans, Braley shared those comments with Secretary of Education Arne Duncan this week.

For decades college tuition costs have been rising significantly. Student loan debt today totals $1.2 trillion, $864 billion of which is backed by the federal government. More than 70 percent of students who graduated from college in 2012 had student loan debt.

A copy of Braley’s College Tuition and Debt Relief Act of 2014 is available online HERE.

# # #