Bill also makes Landmark Investments in Minority Serving Institutions
Washington, DC (September 7, 2007) – Today, Congressman Rubén Hinojosa (D-TX), chair of the Subcommittee on Higher Education, applauded the final passage of legislation that not only makes the largest investment in higher education in more than a generation, but also makes significant investments in Hispanic-Serving Institutions (HSIs) and Historically Black Colleges and Universities (HBCUs).
The College Cost Reduction and Access Act, which both the House of Representatives and Senate overwhelmingly approved today, will boost college financial aid by more than $20 billion over the next five years. The bill pays for itself by reducing federal subsidies paid to lenders in the college loan industry.
Earlier this week, Hinojosa was appointed to the conference committee charged with reconciling differences between the House and Senate versions. As a conferee, Hinojosa was a key negotiator in efforts to formulate a final report. The legislation now goes to the President’s desk for his signature.
“In 1944, the GI bill opened our college campuses to our returning veterans – rich, poor, black, Hispanic – they all had a shot at the American Dream of a college education,” said Hinojosa. “This bill provides us another opportunity to make sure that America becomes smarter, stronger and richer as a result of an egalitarian investment in education.”
The bill comprises of a package of investments to expand higher education opportunities. It guarantees a minimum increase of $1,090 in the maximum Pell grant over the next five years -- reversing the last five years of stagnant funding -- and would benefit over six million low- and moderate-income students nationwide. Over 400,000 of these students reside in Texas.
To reduce the cost of loans for student borrowers, the bill would cut interest rates in half from 6.8 percent to 3.4 percent over four years. In Texas, the debt of a typical need-based borrower at four-year public school is $14,233. Once it is fully implemented, this cut would save the typical Texan borrower $4,550 over the life of the loan. Roughly 205,500 students in Texas take need-based loans each year.
The final bill also contains a landmark provision that commits $200 million in grants over the next two years to HSIs, which enroll almost half of all Hispanic college students. Overall, the bill increases funding by $510 million over two years for minority serving intuitions. In the 15th Congressional district, University of Texas-Pan American, Coastal Bend College, and Harlingen’s Texas State Technical College would gain from the provision, as would 41 other HSIs and nine HBCUs in Texas.
“I am particularly proud of our work to strengthen the institutions that are the gateways of access to higher education for minority students,” said Hinojosa. “Close to half of our public school children are racial or ethnic minorities – one in five is Hispanic. It is clear that minority serving institutions will only grow in importance, and this initiative will ensure that our nation has enough college graduates to fuel our knowledge-based economy.”
The College Cost Reduction and Access Act also includes a number of other provisions that would ease the financial burden imposed on American families by the cost of college, including:
o Tuition assistance for excellent undergraduate students who agree to teach in the nation’s public schools;
o Loan forgiveness after 10 years of public service and loan repayment for college graduates that go into vital public service jobs; and
o Strategies to help colleges contain costs and make online information on college costs for students and parents more user friendly.
“This is a once-in-a-generation opportunity,” concluded Hinojosa. “This bill will open the doors of higher education to a new generation of students and ensure America’s future competitiveness and prosperity.”