Last week, U.S. Rep. Joe Donnelly, D-Granger, joined the House in passing the conference report to accompany The College Cost Reduction and Access Act.

“Getting a college education is essential to compete in today’s global economy,” Donnelly said in a press release. “By making the single largest investment in college financial aid since the 1944 GI Bill, this legislation helps millions of students and families pay for college, and does so at no new cost to taxpayers.”

The College Cost Reduction and Access Act increases the maximum Pell Grant scholarship by $490 next year and at least $1,090 over the next five years, ultimately reaching a maximum scholarship of at least $5,400 by 2012.

To reduce the cost of loans for millions of student borrowers, the legislation would cut interest rates in half on need-based student loans, from 6.8 percent to 3.4 percent over the next four years.

In addition, the legislation would guarantee that borrowers would never have to spend more than 15 percent of their yearly discretionary income. Also, borrowers in economic hardship could have their loans forgiven after 25 years.