(Warwick, R.I.) Congressman Jim Langevin (D-RI) today voted for H.R. 2669 – the College Cost Reduction and Access Act. The Senate also approved the bill today, and it will now go to President Bush, who is expected to sign the bill into law.

“In the battle to improve access to affordable education, the passage of this legislation is a tremendous victory,” said Langevin. “I strongly believe that this bill will make America stronger.  While our nation certainly faces challenging times of war and economic uncertainty, we should take tremendous hope and pride in the investments that Congress is making in the future by expanding access to higher education.”

The College Cost Reduction Act, the single largest investment in education since the GI bill, will:
• Cut interest rates in half on subsidized student loans over the next four years
• Make student debt more manageable for those facing economic hardship
• Increase the purchasing power of the Pell Grant
• Encourage and reward public service by offering loan forgiveness and repayment for our most dedicated military service members, nurses, early childhood educators and others who take on some of the most needed and challenging - but not the most lucrative - professions

Under the legislation, the maximum value of the Pell Grant scholarship would increase by $1,090 over the next five years, reaching $5,400 by 2012. Close to 6 million low- and moderate-income students across the country would benefit from this increase. Approximately 21,590 Rhode Islanders are receiving Pell Grants currently.
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. The rate cut will save the typical student borrower a total of $4,400. About 6.8 million students take out need-based loans each year. Rhode Island students are expected to save about $4,420.

In addition, the legislation would protect students from unmanageable levels of federal student debt by guaranteeing that borrowers will never have to spend more than 15 percent of their yearly discretionary income on loan repayments and by allowing borrowers in economic hardship to have their loans forgiven after 25 years. 

For Rhode Island, loans and Pell Grant aid to students and families over the next five years will increase to $127.4 million. Currently there are 19,649 Rhode Islanders with need-based loans at four-year public institutions. The average debt incurred by these students is approximately $13,822.

-30-