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House Committee Passes College Cost Reduction Act

A
committee of the U.S. House of Representatives approved yesterday the College
Cost Reduction Act of 2007, which promises to reduce the cost of government student loans
and increase the number and size of Pell grants.

Provisions
of the bill call for cutting student-loan interest rates by half over the next
5 years, increasing federal loan limits so borrowers can rely less on more
costly private loans, increasing the maximum Pell Grant scholarship by at least
$500 over the next 5 years, and expanding eligibility for student loans to
serve more students in financial need. The bill also provides upfront tuition
assistance to qualified undergraduates who commit to teaching in public schools
in high-poverty areas or in high-need subjects.

An analysis by the House Education and
Labor Committee, which authored the bill, says the interest-rate provisions
would save the typical student-loan borrower, with a need-based debt of
$13,800, some $4400 over the life of the loan. The expansion of Pell grants in
the bill would make another 600,000 students eligible for these awards.
Graduate and undergraduate students can apply for federal student loans. Pell
grants are reserved for undergraduates.

The committee’s Web site has more details about the bill, including
a detailed fact sheet. The committee claims in its
announcement that the bill will pay for itself through reduced subsidies paid
to private lenders, a savings of about $19 billion.

3 comments on “House Committee Passes College Cost Reduction Act”

  1. janet Person says:

    We are all encourage to try to get our students to search out and apply for scholarships and grants and any kind of financial aid possible. So search http://www.freetoapply.com for student awards.

  2. Blaine D says:

    This is a big help to those suffering difficulties in studying in universities that has a high tuition fees. A college degree is a virtual guarantee that a person will earn extra money, so the cost of education is viewed as a worthy investment, perhaps the greatest investment a person can make. However, in these tighter times, people are wondering just whether or not going to a more exclusive private college is worth the money. SmartMoney ran the numbers, and private universities come up short in cost of attending versus career earnings and extra money. In fact, the crème de la crème of all private universities, the Ivy League schools, have some of the worst career returns on four-year degrees of all. Here are the results of the SmartMoney study and more ideas on how to save extra money on college.

  3. This was a good read. Thank you for the information. Unfortunately, college costs have risen significantly since this was posted…at a rate that’s higher than the current inflation rate.

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