Published: January 22, 2007 12:49 am            

COLLEGE PLANS: New legislation would save students money

Two pieces of legislation in front of the newly elected Congress could combine to send thousands more people to college.

The House of Representatives passed the College Student Relief Act on Wednesday. The act would cut interest rates for federal Stafford student loans in half over the next five years, from 6.8 now to 3.4 percent as of July 1, 2011.

The Senate, meanwhile, has before it the Non-Traditional Student Success Act. Introduced by Sen. Hillary Clinton, D-N.Y., it would increase the maximum available Pell grant from $4,050 to $12,600 over the next five years. Pell grants go to the most needy families and do not have to be repaid.

The bill, first introduced in 2004, would also authorize $50 million to improve remedial education classes and allow for an increase in on-campus child care funding to $75 million for fiscal year 2008.

These bills would benefit everyone, but research by the Public Interest Research Group shows that New York state has the most student loan borrowers for four-year institutions — 243,696 for the 2004-2005 school year. The group’s recent report shows that the average New York student graduates with $14,276 in federal loan debt.

Additionally, the U.S. Department of Education estimates that 200,000 potential students don’t go to college because of the cost.

“The cost of a four-year public college has increased 96 percent in 10 years and continues to go up every year,” Rep. Louise Slaughter, D-Fairport, said in a release. “This bill is focused on our students from middle-class and working families.”

Anything that helps students afford college is a plus, according to Lou Paonessa, public relations director at Niagara County Community College. About 80 percent of the school’s students get some sort of financial assistance, he said.

“The cost, even at the community college level ... it’s getting more out of control,” he said. “(The act) certainly opens the door to more students.”

The CSRA would cost the federal government nearly $6 billion, according to The Associated Press. The cost would be offset by reducing the yield on college loans the government guarantees to lenders and cutting the guaranteed return banks get when students default. Banks also would have to pay more in fees.

As for the Non-Traditional Student Success Act, Clinton feels that the additional loans and tax breaks it would provide are vital to students looking to attend college while raising a family.

“College tuition has gone up every year for the last 25 years, making it more difficult for students and their families to afford college,” she said in a release. “This bill would enable non-traditional students to create a better future for themselves.”

The future of both pieces of legislation is unknown. The Bush administration opposes the CSRA, saying in a White House release Thursday that the act would assist college graduates as opposed to those currently in school.

“Student debt loads have soared in recent years, and it is not clear that encouraging more loans is a wise course,” the release said. “Instead, the administration would support efforts to direct savings to additional grant support for low-income students.”

As for the NTSSA, California Democratic Rep. George Miller, chairman of the House committee on education, told The Associated Press that lawmakers plan to address that and other issues at a later date.

Contact Paul Lane at 282-2311, Ext. 2249.

        

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