Congress passes sweeping changes in student aid

You cannot say this would ever happen under a Republican Congress.  On Friday, the Democratic Senate and House passed legislation that would decrease student loan interest payments:

Congress on Friday approved the largest overhaul of education fundingin more than 60 years, a $20.9-billion program that would boostfinancial aid to students and reduce interest payments on their loans.

Students who enter certain public sector jobs would have their debtserased under the plan, the total cost of which would be offset byslashing government subsidies to lenders. It also calls for a$510-million investment in minority colleges.

The program would have particular impact in California, which has morerecipients of low-income student grants than any other state. Thebill's increases to those Pell Grants are expected to benefit about 5.5million needy students nationwide.

As a recent college graduate who had to deal with student loans, this legislation is incredibly good news.  In many cases what we have happening are people even as old as 28 still paying off college debt, mostly due to all the interest.  The average student graduates with $19,000 in debt.

Specifically, here are the key details:

• Maximum Pell Grant increased from $4,050 to $5,400.
• Interest rates cut from 6.8% to 3.4%.
• All of the changes would take affect by the year 2012.

The Senate passed it by a vote of 79-12, and in the House it was 292-97.  Bush is expected to sign the bill.

Comments

[Jon]

Well done! Its about time this country invested in the future of young people who want to educate themselves. Its not exactly free university for anyone who wants it but its definitely a lot better than what we've had.

[Chief Editor: Todd]

It's a question of where our subsidies are going? Are they going to oil companies? Or are they going to people? Which is a smarter investment: ensuring further dependence on foreign sources of oil, or ensuring that the next generation of Americans are able to compete on the global market?

[Ann Onymouse]

Why can't we join the rest of the industrial world (note I do not say civilized world) and have free public college-level education and free health care. WHAT IS THE PROBLEM?? Elect those that will do this and DEFEAT THOSE THAT OPPOSE IT. please.