For the hundreds of thousands of college
students who take out student loans and sink themselves into thousands
of dollars worth of debt, relief is on the way.
Both the
U.S. Senate and House voted to pass the College Cost Reduction and
Access Act, which will provide the largest investment in higher
education since the 1944 G.I. Bill.
The bill passed with
bipartisan approval in both the House and Senate. Officials for the
Bush Administration announced Thursday that President Bush would sign
the bill into law.
“Today is truly a historic day for
students, families and the future of our country,” said U.S. Rep.
George Miller, D-Cali., chairman of the Education and Labor Committee
and an author of the bill, in a statement Friday.
The
College Cost Reduction and Access Act will lower the interest rates of
need-based federal student loans, decreasing interest rates by half the
current rate, according to a Congressional release.
Pell
Grant recipients will see a large increase in their maximum scholarship
amount within the next year and an increase of over a thousand dollars
in the next five years.
Students seeking careers in the
public school system or as public servants will also be assisted.
Future public school teachers who commit to teaching sought-after
subjects for schools in need will receive tuition assistance up-front
of up to $4,000 a year.
Those who work for 10 years as
public servants will receive loan forgiveness, according to the bill.
The loan repayment and forgiveness program will apply to those in the
military, law enforcement officers, firefighters, nurses, librarians
and others.
U.S. Rep. Steve Kagen, D-Wis., supported the bill and what it will do for Wisconsin students.
“Nothing
is more important than education and families in Wisconsin will save
money thanks to this bipartisan bill,” Kagen said in a statement
Friday.
The bill will greatly benefit all UW-Madison students who currently
have student loans as well as those receiving Pell Grant scholarships,
Kagen said. The 68,000 Wisconsin students who receive Pell grants will
gain increased funding from the bill according to Kagen.
Kagen said of the 76,000 students in Wisconsin that take out loans, all of them stand to save more than $4,000.
Student leaders from groups advocating higher education reform on campus strongly supported the bill.
“The
College Cost Reduction and Access Act is the most meaningful higher
education reform in more than 15 years,” said Jeff Rolling, UW-Madison
student and chair of Wisconsin Students Public Interest Research Group.
