Congressman Sander Levin

Making College More Affordable

The new Congresss has made strengthening higher education access and affordability a priority. In recent years, college costs have grown substantially, forcing the average borrower $17,500 into debt. The seriousness of our higher education crisis necessitates a dramatic response.

The College Cost Reduction Act of 2007, signed into law last year, rose to this challenge by investing $18 billion over the next five years in higher education, the single largest investment in college financial aid since the GI Bill in 1944. The maximum Pell Grant will be increaded to $5,200 – up from just $4,050 in 2006. TEACH grants are established to provide $4,000 per year for high-achieving students who commit to teach in high-need schools or high-need fields – like math and science. The interest rates for need-based student loans are cut in half, and those who pursue careers in certain lower paying and necessary jobs such as firefighters, law enforcement officers, public defenders and librarians are rewarded with loan forgiveness. 

In Michigan, over 200,000 students could see benefits from the Pell increases and about 144,000 student borrowers with subsidized loans would see savings of over $4,200 on average over the life of their loans. This bill provides close to $513 million in loans and grants to Michigan’s students and families.

The Higher Education Opportunity Act [HR4137], passed overwhelmingly by Congress and recently signed into law, goes even further to make college more affordable and accessible. The Free Application for Federal Student Aid has been streamlined, and an easy-to-navigate, two-page FAFSA-EZ form has been created for low-income families. Pell grants are now available year-round for students who take classes during the summer. The cost of textbooks, which often adds substantially to the price of education, will be more manageable with new requirements that schools and publishers disclose pricing information in advance of class registration. With increased focus on low-income and minority students, veterans and military families, students with disabilities, the law opens the door for many who otherwise may have struggled to pursue higher education.