President Expected To Sign The Largest Increase In Student Aid Since The G.I. Bill

WASHINGTON – Congress sent the College Cost Reduction and Access Act to the president yesterday for his signature, providing the largest increase in student aid since the G.I. Bill. The bill reduces $20 billion in subsidies to banks and other student loan providers and redirects the funds to students. The Bush administration, despite earlier threats to veto the legislation, is expected to sign it this week.


If President Bush signs the measure, changes will begin to take effect on Monday, Oct. 1, providing welcome news for families struggling with tuition and fees that are rising far faster than inflation while real wages remain stagnant. New government data shows that the cost of college is soaring out of the reach of more and more American families, according to a report recently released by the Campaign for America’s Future.


Campaign for America’s Future co-director Robert Borosage, whose group helped rally support for the legislation, hailed the bill as an expression of how progressives are increasingly driving the national debate.


“A majority of Americans stand with progressives and they’re defining a new direction in Congress,” said Borosage. “This is an important first step for students and their families, accomplished over the president’s opposition. We still have a long way to go if we are to insure that college is affordable for all. No student should be priced out of the college or advanced training they need to succeed in this economy.”


The bill cuts interest rates on student loans in half, from 6.8 percent to 3.4 percent over 5 years, making student loan repayment more manageable. Importantly, it guarantees that borrowers will never spend more than 15 percent of their yearly income on loan repayments and will have their loans forgiven after 25 years. The legislation also provides upfront tuition for good students who commit to teach in high needs schools upon graduation and provides loan forgiveness for a range of other public service employees.


The new legislation would increase the amount students receive in Pell Grant scholarships to $5,400 a year by 2012, up from $4,050 in 2006. Unlike other forms of financial aid, students do not have to repay Pell Grants. Eligibility for the grant is based on family income.


The Campaign for America’s Future report shows that undergraduate tuition and fees for a public four-year institution increased by 37 percent over the last six years, while median household incomes fell in that same period.


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**NOTE: To obtain an electronic copy of the report on college affordability and state-specific data, please visit http://www.ourfuture.org/issues_and_campaigns/education/index.cfm .**

 

STATE-BY-STATE INCREASES IN STUDENT AID

 

The College Cost Reduction and Access Act of 2007 will provide increased college aid for students across the country. State-specific increases in aid follow.

 

 

Total Pell Grant aid this year

Additional loan aid over 5 years

Additional grant aid next school year

Additional grant aid over the next 5 school years

Alabama

$275,800,000

$106,299,000

$39,963,000

$433,895,000

Alaska

$11,900,000

$6,331,000

$1,720,000

$18,679,000

Arizona

$515,100,000

$388,432,000

$74,643,000

$810,426,000

Arkansas

$162,200,000

$53,636,000

$23,509,000

$255,252,000

California

$1,560,900,000

$579,257,000

$226,174,000

$2,455,671,000

Colorado

$202,600,000

$147,185,000

$29,360,000

$318,774,000

Connecticut

$91,700,000

$72,746,000

$13,290,000

$144,297,000

Delaware

$21,900,000

$16,889,000

$3,179,000

$34,513,000

District of Columbia

$50,000,000

$91,655,000

$7,239,000

$78,592,000

Florida

$742,800,000

$336,450,000

$107,628,000

$1,168,563,000

Georgia

$411,300,000

$211,843,000

$59,606,000

$647,164,000

Hawaii

$31,100,000

$13,423,000

$4,506,000

$48,925,000

Idaho

$83,600,000

$27,831,000

$12,120,000

$131,588,000

Illinois

$531,700,000

$375,919,000

$77,048,000

$836,540,000

Indiana

$338,000,000

$176,150,000

$48,981,000

$531,803,000

Iowa

$194,700,000

$124,021,000

$28,214,000

$306,334,000

Kansas

$132,700,000

$73,716,000

$19,222,000

$208,703,000

Kentucky

$221,300,000

$84,869,000

$32,074,000

$348,240,000

Louisiana

$248,500,000

$88,569,000

$36,001,000

$390,883,000

Maine

$49,700,000

$26,890,000

$7,200,000

$78,172,000

Maryland

$170,300,000

$102,603,000

$24,681,000

$267,973,000

Massachusetts

$198,200,000

$210,540,000

$28,716,000

$311,778,000

Michigan

$429,800,000

$245,416,000

$62,279,000

$676,185,000

Minnesota

$185,500,000

$190,779,000

$26,873,000

$291,776,000

Mississippi

$218,900,000

$56,357,000

$31,720,000

$344,398,000

Missouri

$265,200,000

$179,573,000

$38,422,000

$417,164,000

Montana

$47,900,000

$20,507,000

$6,938,000

$75,333,000

Nebraska

$67,500,000

$51,944,000

$9,775,000

$106,131,000

Nevada

$41,200,000

$19,329,000

$5,966,000

$64,778,000

New Hampshire

$32,300,000

$34,320,000

$4,678,000

$50,793,000

New Jersey

$276,200,000

$114,801,000

$40,027,000

$434,592,000

New Mexico

$110,200,000

$27,904,000

$15,968,000

$173,370,000

New York

$1,067,300,000

$538,493,000

$154,657,000

$1,679,172,000

North Carolina

$395,900,000

$148,147,000

$57,365,000

$622,832,000

North Dakota

$36,500,000

$21,163,000

$5,288,000

$57,415,000

Ohio

$507,200,000

$304,629,000

$73,492,000

$797,939,000

Oklahoma

$203,100,000

$81,649,000

$29,426,000

$319,487,000

Oregon

$161,000,000

$97,968,000

$23,325,000

$253,255,000

Pennsylvania

$480,900,000

$421,365,000

$69,685,000

$756,596,000

Rhode Island

$53,900,000

$42,651,000

$7,811,000

$84,803,000

South Carolina

$199,300,000

$81,688,000

$28,872,000

$313,476,000

South Dakota

$43,200,000

$24,529,000

$6,259,000

$67,953,000

Tennessee

$269,500,000

$125,708,000

$39,045,000

$423,926,000

Texas

$1,129,900,000

$397,621,000

$163,722,000

$1,777,598,000

Utah

$156,200,000

$44,845,000

$22,634,000

$245,746,000

Vermont

$21,700,000

$26,681,000

$3,150,000

$34,203,000

Virginia

$247,900,000

$154,493,000

$35,924,000

$390,043,000

Washington

$212,300,000

$108,235,000

$30,758,000

$333,955,000

West Virginia

$103,300,000

$47,761,000

$14,970,000

$162,537,000

Wisconsin

$169,800,000

$117,636,000

$24,602,000

$267,116,000

Wyoming

$22,500,000

$14,989,000

$3,254,000

$35,329,000

 

[SOURCES: Estimates by Senate HELP Committee and House Education and Labor Committee, based on data from the Congressional Budget Office, the Congressional Research Service, and the National Association of Independent Colleges and Universities.]