By: Lucas Correia
A new education act passed by Congress to help reduce the strain of
paying for college has the support of the Massachusetts Student Public
Interest Research Group.
On
Friday, September 7, the College Cost Reduction and Access Act was
passed by the U.S. Senate and House of Representatives. This act will
provide additional aid to low-income students, as well as reduce the
amount of debt students accumulate during school.
The act will now go to President Bush, who has already agreed to sign it into law.
UMass
MASSPIRG Campus Organizer, Christopher Burns, calls this act "an
excellent first step in making higher education more affordable."
He commends the act on the increase in Pell Grant awards and the improved payment plan for low-income borrowers.
Though
happy with the improvement, Burns insists that this is "just a first
step" towards making higher education more accessible to everyone. SGA
President Aaron Buford also lauded the congressional act as a step in
the right direction for higher education.
"The bipartisan
votes for this legislation and the President's pledge to sign it into
law are testament to the broad support for helping students and
families pay for college," he said in a statement.
The most
notable change from previous years is the increase in the amount of
money awarded through Pell Grants. The maximum amount, which currently
rests at $4,310, will increase by $490 for the next two years, $690 for
the following two years, and $1,090 for every year afterward.
The
new act also creates an income-based payment plan, which will allow
low-income borrowers to make more reasonable payments. Under this new
agreement, borrowers will be paying 15 percent of their income if it is
150 percent above the poverty line. Interest rates will also be reduced
for low and middle-class borrowers receiving Stafford loans.
According
to Buford, "the bill trims excessive subsidies that benefit a handful
of banks and directs them to millions of students and families who are
working to pay for college."
The new act will also finance an
increase in spending for education. Lenders will receive a smaller rate
of return for offering loans and a slightly smaller reinsurance rate
from the federal government. These new rates will not affect taxpayers.
