Student Relief Package Sails Through the House

Breaking News! Well, sort of. The U.S. House of Representatives just passed the "College Cost Reduction Act of 2007," which will boost federal funding by $18 billion over the next five years while simultaneously reducing subsidies to lenders. The bill also increases investment in minority institutions, controls student repayment rates and creates loan-forgiveness programs. Under the act, the maximum value of Pell Grants, which are need-based federal scholarships, would increase by $500 over the next five years, and the interest rates on need-based government student loans would be halved to 3.4% from 6.8%. Representative George Miller (D-CA), the chair of the House Committee on Education and Labor, stated that the "bill is a remarkable step forward in our efforts to help every qualified student go to college."

The Senate is expected to vote on a similar bill later this month. However, the White House has stated they may veto the bill, for it only "benefits students once they leave school." In a Statement of Administration Policy, the White House's Office of Management and Budget recommended that Pell Grants be increased $1,340 (from $4,050 to $5,400) over the next five years to help students who are currently in college or are contemplating enrolling in it. Though the debate surrounding the near future of student loans and grants is bound to be exciting, hopefully both the legislative and the executive branches keep the best intentions of the bill's subjects--the youth of this country--in mind.