News from headquarters
As part of my ongoing effort to highlight the accomplishments of our Democratic Congress, here's some information on the College Cost Reduction Act of 2007, which passed the House of Representatives yesterday. Shortly after passing, I received a news release from Rep. Earl Pomeroy's office and the College Democrats of America regarding this legislation.
Here are some excerpts from Pomeroy's news release:
Congressman Earl Pomeroy today voted for legislation that would boost college financial aid by about $18 billion nationally and by $14 million in North Dakota over the next five years. The College Cost Reduction Act of 2007 (H.R. 2669), which passed by a vote of 273 to 149, would make the single largest investment in college financial aid since the 1944 GI Bill, directly benefiting the over 17,000 North Dakota students who take out need-based loans each year at 4-year public schools.
Among other things, this legislation will cut interest rates on subsidized student loans in half over the next five years, limit the percentage of income students spend repaying loans, and expand both the eligibility and size of the Pell Grant program. The legislation pays for itself by reducing excessive federal subsidies paid to lenders in the college loan industry by $19 billion. It also includes nearly $1 billion in federal budget deficit reduction.
It goes on to say:
Under the College Cost Reduction Act, the maximum value of the Pell Grant scholarship would increase by $500 over the next five years. When combined with other Pell scholarship increases passed or proposed by Congress this year, the maximum Pell Grant would reach $4,900 in 2008 and $5,200 in 2011, up from $4,050 in 2006. About 6 million low and moderate-income students would benefit from this increase, including over 17,000 in North Dakota.
This legislation would cut interest rates in half on need-based student loans, cutting interest rates from 6.8 percent to 3.4 percent in equal steps over the next five years. Once fully phased-in, this would save the typical student borrower in North Dakota - with nearly $13,000 in need-based student loan debt - $4,100 over the life of their loan.
The legislation would also prevent student borrowers from facing unmanageable levels of federal student debt by guaranteeing that borrowers will never have to spend more than 15 percent of their yearly discretionary income on loan repayments and by allowing borrowers in economic hardship to have their loans forgiven after 20 years.
Here's an excerpt from the College Dems' news release:
The College Democrats of America today applauded House Democrats for standing up to President Bush's irresponsible veto threat and passing the College Cost Reduction Act of 2007. After promising last year to make college more accessible and affordable, Democrats kept that promise by passing the Reduction Act, which would increase the size of Pell grants for poor students, cut interest rates for student loans, cap monthly loan payments at 15 percent of a student's discretionary income, and slash subsidies for the scandal-plagued student loan industry by $19 billion. [New York Times, 7/11/07]
Instead of joining Democrats in helping make college more affordable for more Americans, President Bush and Republicans in Congress continue to put their special interest friends first and stand in the way of long-overdue reform.
Not a single Democrat voted against this, but only 47 Republicans voted for it. Unfortunately, President Bush has threatened to veto it. It's no wonder why the majority of young people lean Democrat.
-Rick
Here are some excerpts from Pomeroy's news release:
Congressman Earl Pomeroy today voted for legislation that would boost college financial aid by about $18 billion nationally and by $14 million in North Dakota over the next five years. The College Cost Reduction Act of 2007 (H.R. 2669), which passed by a vote of 273 to 149, would make the single largest investment in college financial aid since the 1944 GI Bill, directly benefiting the over 17,000 North Dakota students who take out need-based loans each year at 4-year public schools.
Among other things, this legislation will cut interest rates on subsidized student loans in half over the next five years, limit the percentage of income students spend repaying loans, and expand both the eligibility and size of the Pell Grant program. The legislation pays for itself by reducing excessive federal subsidies paid to lenders in the college loan industry by $19 billion. It also includes nearly $1 billion in federal budget deficit reduction.
It goes on to say:
Under the College Cost Reduction Act, the maximum value of the Pell Grant scholarship would increase by $500 over the next five years. When combined with other Pell scholarship increases passed or proposed by Congress this year, the maximum Pell Grant would reach $4,900 in 2008 and $5,200 in 2011, up from $4,050 in 2006. About 6 million low and moderate-income students would benefit from this increase, including over 17,000 in North Dakota.
This legislation would cut interest rates in half on need-based student loans, cutting interest rates from 6.8 percent to 3.4 percent in equal steps over the next five years. Once fully phased-in, this would save the typical student borrower in North Dakota - with nearly $13,000 in need-based student loan debt - $4,100 over the life of their loan.
The legislation would also prevent student borrowers from facing unmanageable levels of federal student debt by guaranteeing that borrowers will never have to spend more than 15 percent of their yearly discretionary income on loan repayments and by allowing borrowers in economic hardship to have their loans forgiven after 20 years.
Here's an excerpt from the College Dems' news release:
The College Democrats of America today applauded House Democrats for standing up to President Bush's irresponsible veto threat and passing the College Cost Reduction Act of 2007. After promising last year to make college more accessible and affordable, Democrats kept that promise by passing the Reduction Act, which would increase the size of Pell grants for poor students, cut interest rates for student loans, cap monthly loan payments at 15 percent of a student's discretionary income, and slash subsidies for the scandal-plagued student loan industry by $19 billion. [New York Times, 7/11/07]
Instead of joining Democrats in helping make college more affordable for more Americans, President Bush and Republicans in Congress continue to put their special interest friends first and stand in the way of long-overdue reform.
Not a single Democrat voted against this, but only 47 Republicans voted for it. Unfortunately, President Bush has threatened to veto it. It's no wonder why the majority of young people lean Democrat.
-Rick
posted by Dem-NPL at 9:45 AM
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