Legislation to ease student college loan

Thurs Sep 27, 2007

Though college tuition is on the rise across the country, Congress is trying to do its part to bail out students. On Sept. 7, the House of Representatives passed the College Cost Reduction and Access Act, which requires the president's signature to become a law.

While most of the effects of the bill would not be fully in place until 2013, it does benefit current students who take federal loans. Many SUNY New Paltz students support the bill.

 

"It's not an easy thing for everyone to pay for college these days, and a college education is necessary for getting a job to pay off the loans," said Amarilis Lugo, a junior art history major.

The bill, which was introduced by Representative George Miller (D-Ca) on June 12, helps students in several different ways. It increases Pell Grants, which are federal awards based on financial need, reduces interest rates on Stafford Loans and creates an income based repayment program, among other measures. The changes will be phased in gradually over the next five years.

The legislation introduced by Miller, the chairman of the House Education and Labor Committee, would not come at additional cost to taxpayers. Congress would pay for the nearly $20 billion education bill by reducing subsidies to college loan lenders.

"It sounds like a good plan for students who take out loans," said James Leggate, a sophomore creative writing major. "I was offered a loan and I didn't take it because of the interest rates."

Leggate said that because of not taking the loan, he will be graduating without debt. However, many students receive some kind of assistance. More than $865 million was awarded as part of the Tuition Assistance Program in the 2005-2006 school year, according to an annual report by the New York State Higher Education Services Corporation.

Resource: http://oracle.newpaltz.edu