Bush agrees to student aid increase

President Bush signed the College Cost Reduction and Access Act Thursday Sept. 27 in an attempt to reduce the financial burden on college students across the nation. Despite threatening to veto the bill, Bush agreed to sign due to tremendous support from the public and Congress. It took effect on Oct. 1.

The Bill provides the largest increase in student aid since the G.I. Bill. It cuts subsidies to student loan providers and redirects $20 billion to students themselves.

It was approved 292-97 in the House and 79-12 in the Senate. Idaho Senator Michael Crapo voted for the bill and Senator Larry Craig did not vote. Idaho Representative Bill Sali voted against the bill. Representative Michael Simpson originally voted against it but changed his vote after differences had been resolved.

The College Cost Reduction and Access Act reduces interest rates on student loans to 3.4 percent over the next 5 years. The current interest rate is 6.6 percent.

It also ensures borrowers will never spend more than 15 percent of their annual income repaying loans and after 25 years the loans will be forgiven.

The Act will also increase funding for Pell Grant scholarships so by 2012 recipients will receive $5,400 a year, rising from $4,050 in 2006.

Upfront funding for tuition will also become available to top students on the condition that they teach in a high school upon graduation.

The bill was supported by various organizations including the National Education Association, the Federation of U.S. Public Interest Research Groups (PIRG), NAACP, Rock the Vote, American Medical Student Association, United States Students Association and Campus Progress. These groups represent millions of students and parents. Big banks and other private and commercial lenders opposed the bill.

A report released by the Campaign for America’s Future showed that average tuition rates for four-year colleges increased by 37 percent over the past six years. In that same period median household incomes fell.

The report also showed how debt impacts the lives of college students both professionally and personally. It causes many students to avoid certain careers such as teaching and social work, both critical public service jobs.

As of 2006, 30 percent of young graduates delayed buying a car and 38 percent postponed buying a home due to student loan debt. 14 percent delayed marriage and 21 percent deferred having children.

 Each year 200,000 qualified students do not attend college at all due to financial restrictions. In addition, 400,000 qualified students attend a community college instead of a four year institution.

The average college student takes on $17,500 in debt in order to pay for their education.

As fees rise faster than inflation, The Collect Cost Reduction and Access Act will help to stop students  from taking on more and more debt to attend college.

It is part of a long-term effort to make higher education available to all.

TABITHA KEILY
News Writer

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