2008 Woodie Awards
Congress passes bill raising grant limits
Erica Sherrill Owens
Issue date: 9/13/07 Section: News
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The U.S. Congress gave lower income students good news regarding financial aid by passing the College Cost Reduction and Access Act last Friday.
"The College Cost Reduction and Access Act is the most meaningful higher education reform in more than 15 years," said Luke Swarthout, higher education advocate for the Federation of State Public Interest Research Groups. "The legislation addresses the dual financial challenges of access and affordability that face American college students."
The act, which was passed by the U.S. Senate and House of Representatives by votes of 79 to 12 and 292 to 97 respectively, will provide billions of dollars a year in additional aid to low-income students. The act will also provide reforms to lower student loan debt. It now goes to the president to be signed into law.
According to a news release from USPIRG, the College Cost Reduction and Access Act will increase the maximum Pell Grant award.
The grant is the nation's leading college access program. It provides grants to millions of low-income students every year. The maximum Pell Grant amount is currently $4,310, but the act will increase the award money by $490 for each of the next two years, by $690 for the following two years and by $1,090 for each following year.
"USM has a fairly high number of Pell Grant recipients," said David Williamson, interim director of financial aid. "Here at USM it (the increase) will help a number of students."
Williamson said the proposed increase might have an effect on student loan volume and loan industries as well.
"Increased amounts in the Pell Grant might mean students need to borrow less," Williamson said.
Brittney Atlas, a freshman psychology major, said she is thrilled that Congress has passed an act that will increase funding for students.
"I think it's wonderful," Atlas said. "I really could use it. Money doesn't grow on trees so any help I can get, I'm down for."
The College Cost Reduction and Access Act will reduce interest rates on subsidized Stafford loans, benefiting millions of low and middle-income student borrowers nationwide. The act will also reduce subsidies to student lenders, which will finance increased education spending.
"The College Cost Reduction and Access Act is the most meaningful higher education reform in more than 15 years," said Luke Swarthout, higher education advocate for the Federation of State Public Interest Research Groups. "The legislation addresses the dual financial challenges of access and affordability that face American college students."
The act, which was passed by the U.S. Senate and House of Representatives by votes of 79 to 12 and 292 to 97 respectively, will provide billions of dollars a year in additional aid to low-income students. The act will also provide reforms to lower student loan debt. It now goes to the president to be signed into law.
According to a news release from USPIRG, the College Cost Reduction and Access Act will increase the maximum Pell Grant award.
The grant is the nation's leading college access program. It provides grants to millions of low-income students every year. The maximum Pell Grant amount is currently $4,310, but the act will increase the award money by $490 for each of the next two years, by $690 for the following two years and by $1,090 for each following year.
"USM has a fairly high number of Pell Grant recipients," said David Williamson, interim director of financial aid. "Here at USM it (the increase) will help a number of students."
Williamson said the proposed increase might have an effect on student loan volume and loan industries as well.
"Increased amounts in the Pell Grant might mean students need to borrow less," Williamson said.
Brittney Atlas, a freshman psychology major, said she is thrilled that Congress has passed an act that will increase funding for students.
"I think it's wonderful," Atlas said. "I really could use it. Money doesn't grow on trees so any help I can get, I'm down for."
The College Cost Reduction and Access Act will reduce interest rates on subsidized Stafford loans, benefiting millions of low and middle-income student borrowers nationwide. The act will also reduce subsidies to student lenders, which will finance increased education spending.
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