WASHINGTON, DC – Friday, U.S. Senator Maria Cantwell (D-WA) applauded Senate legislation making education more affordable and student aid more accessible for generations to come. By a vote of 79 to 12, Friday afternoon, the Senate passed the College Cost Reduction Act which provides the most significant increase in student financial aid since the G.I. bill. The bill cuts interest rates, places a cap on monthly loan payments, and offers loan forgiveness to those in public service careers, such as nursing, teaching, and law enforcement who incur debt from higher education.

 

“For the first time in far too long, we are improving the Pell Grant program guaranteeing more Americans can afford to go to college,” said Cantwell. “Over the past twenty years, the cost of college has tripled and more and more families have been priced out of better futures for their children as federal aid has fallen behind. This bill both makes sure more Americans qualify for federal aid and increases the amount available to each student. That's a huge victory because the best guarantee of a good job in today's global economy is a quality education.”

 

The bill, which would raise the maximum Pell Grant from $4,310 to $5,400 by 2012, increases access for students and simplifies the financial aid process. The bill also cuts the subsidized student loan interests rates in half, from 6.8 percent to 3.4 percent, making student loan repayment more manageable.

 

With a $20 billion increase nationwide, Washington state receives $33 million more in the first year and a total of $334 million over the next five years. This would increase the average grant in the state by $360 in 2008 to $2,870 and increase the eligibility for students to receive a maximum grant reward.

 

Under this bill, borrowers who continue in public service careers can get significant help with their loan payments. For example, a starting teacher earning $30,974 with the Washington state average loan debt of $19,565 could have loan payments capped at 15 percent—reducing monthly payments by $65. After 10 years, all remaining debt would be forgiven, a benefit worth $11,162. 

 

With the help of federal Pell Grants, Cantwell was the first member of her family to graduate from college. She has worked to make college affordable since taking office. After the president’s 2008 budget proposal eliminated Perkins Loan funding and cut back funding for Pell Grants, Cantwell wrote letters to Budget Committee leaders asking them to restore the Perkins Loan funding and raise the maximum Pell Grant award from $4,310 to $5,100.

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