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Government looks to increase Pell grants
Noah Cohen
Issue date: 9/20/07 Section: News
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Congress passed legislation Sept. 7 to increase grants for college students, lower interest rates on student loans, and forgive debt to students who enter public service.
Under the "College Cost Reduction Act" the maximum Pell Grant award would increase from $4,050 to $5,400 by 2012. The bill also cuts the interest rates on student loans in half from 6.8 percent to 3.4 percent over the next four years according to a statement from the House Committee on Education and Labor.
"College education has become more important than ever. By making college more affordable for young Americans, we not only open doors of opportunity for them, but we equip a new generation of Americans to compete and win in the global economy," said a statement from Senator Edward Kennedy (D-MA) chairman of the Senate's education committee.
Both Kennedy and house counterpart Representative George Miller (D-CA) drew comparisons between the recent legislation and the 1944 GI Bill that gave World War II veterans funding for college.
"This bill will do more to help students and families in this country pay for college than any effort since the GI Bill," said Miller.
While administration officials have said President Bush is expected to sign the bill the path to the President's desk was not without political back and forth.
A July 10 statement from the White House said:
"If H.R. 2669, the College Cost Reduction Act of 2007 were presented to the President in its current form, his senior advisors would recommend that he veto the bill,"
The White House statement said the bill falls short in aiding the "neediest students" and would raise long-term costs to taxpayers.
The President's 2008 budget designated "nearly 100 percent of new spending offset by these savings" to be used to increase Pell Grant scholarships, according to a policy statement from the White House Office of Management and Budget.
"By contrast, H.R. 2669 targets less than 40 percent of its new spending toward needy students" added the statement.
Under the "College Cost Reduction Act" the maximum Pell Grant award would increase from $4,050 to $5,400 by 2012. The bill also cuts the interest rates on student loans in half from 6.8 percent to 3.4 percent over the next four years according to a statement from the House Committee on Education and Labor.
"College education has become more important than ever. By making college more affordable for young Americans, we not only open doors of opportunity for them, but we equip a new generation of Americans to compete and win in the global economy," said a statement from Senator Edward Kennedy (D-MA) chairman of the Senate's education committee.
Both Kennedy and house counterpart Representative George Miller (D-CA) drew comparisons between the recent legislation and the 1944 GI Bill that gave World War II veterans funding for college.
"This bill will do more to help students and families in this country pay for college than any effort since the GI Bill," said Miller.
While administration officials have said President Bush is expected to sign the bill the path to the President's desk was not without political back and forth.
A July 10 statement from the White House said:
"If H.R. 2669, the College Cost Reduction Act of 2007 were presented to the President in its current form, his senior advisors would recommend that he veto the bill,"
The White House statement said the bill falls short in aiding the "neediest students" and would raise long-term costs to taxpayers.
The President's 2008 budget designated "nearly 100 percent of new spending offset by these savings" to be used to increase Pell Grant scholarships, according to a policy statement from the White House Office of Management and Budget.
"By contrast, H.R. 2669 targets less than 40 percent of its new spending toward needy students" added the statement.
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