DORGAN SAYS PASSAGE OF HIGHER ED BILL WILL MAKE COLLEGE MORE AFFORDABLE FOR FAMILIES IN NORTH DAKOTA

With skyrocketing college costs, North Dakota ranks 3rd-highest in student loan debt

Friday, September 7, 2007

CONTACT: Justin Kitsch
or  Brenden Timpe
PHONE: 202-224-2551

(WASHINGTON, D.C.) --- U.S. Senator Byron Dorgan (D-ND) said a higher education reconciliation bill given final approval Friday will direct more financial aid to students – bringing college within reach and opening doors for middle-class families in North Dakota and across the nation. The bill will now be sent to the President, who has indicated he will sign it.

“Every parent wants to see their child earn that college degree, but the cost of attending a university has skyrocketed to the point where many families just can’t afford it,” Dorgan said. “It’s long past the time to re-evaluate the way we distribute financial aid so every student, regardless of their background, has that opportunity. This bill does exactly that and I’m proud to support it.”

North Dakota is not immune to the skyrocketing cost of attending college, Dorgan noted. Between 2000 and 2005, the average cost of attending a four-year public college in North Dakota increased 53 percent. During the same period, median household income in the state rose only 16 percent. Seventy-three percent of seniors graduating from a public college in North Dakota leave with some debt. The average amount is $22,682, the third-worst in the nation.

To combat the problem, the higher education reauthorization bill:

• Increases the maximum Pell Grant to $5,400 by 2012. The change will bring an additional $57.4 million in need-based grant aid to North Dakota students over the next five years.

• Cuts the interest rate on student loans subsidized by the government from 6.8 to 3.4 percent. For a typical borrower in North Dakota who qualifies for $13,800 in need-based student aid, this change will save $4,400 over the life of the loan.

• Caps monthly payments at 15 percent of discretionary income. This change will help keep loan repayments down for low- and middle-income college graduates.

• Increases the amount of income that is sheltered from the financial aid process. This change will allow more North Dakotans to qualify for need-based aid. An estimated 28 percent of the median family income is currently needed to pay for one year at a public institution in the state.

• Invests an additional $510 million in minority-serving institutions. This increase in funding will direct more resources to North Dakota’s tribal colleges.

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