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July 11, 2007
Ellsworth Votes to Make College More Affordable for Hoosiers
Bill Boosts Scholarships, Reduces Loan Cost at No New Taxpayer Expense
WASHINGTON - In response to comments he heard from students and university officials during a series of college affordability roundtables earlier this year, Rep. Brad Ellsworth today voted to support the single largest investment in college financial aid since the "GI Bill." The House approved $18 billion of financial aid over the next five years as part of the College Cost Reduction Act.
"The strength of our economy rests on a highly-educated workforce, yet the rising cost of college education prevents many American students from pursuing a degree. That's why Congress can and must do more to help families afford college," said Ellsworth. "The College Cost Reduction Act is a landmark effort to reduce the financial burden students and their families face."
The bill cuts the interest rate for undergraduate students with subsidized loans in half - from 6.8 percent to 3.4 percent - over five years. According to an analysis by U.S. PIRG, the bill will result in an average savings of $2,140 to $4,140 to Hoosier student borrowers over the life of their loans.
"College costs have grown nearly 40 percent over the past five years, leaving many of today's graduates saddled with student loan debt as they enter the workforce," said Ellsworth. "This bill makes it just a little easier for new graduates trying to make ends meet."
The bill also expands and strengthens the Federal Pell Grant program, which provided need-based college scholarships to over five million American students last year. The bill aims to expand the number of eligible students and increase the maximum scholarship by at least $500 over the next four years, benefiting up to 229,869 Hoosier students.
"Pell Grants have a strong track record of helping underprivileged kids access the dream of a college education," said Ellsworth. "With this bill, we are extending that dream to more of them. I think that's a worthwhile goal."
Following new pay-as-you-go budget rules, the bill accomplishes these goals without increasing federal spending. Instead, it saves the taxpayers $750 million through reductions in taxpayer-funded subsidies to college loan lenders.
"The bill shows Congress can make a significant difference in improving the lives of Americans without raising taxes or racking up large amounts of debt," said Ellsworth. "I am glad to support it and will continue to look for additional opportunities to make college more affordable for Hoosier families."
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