Etheridge votes to make college more affordable


Washington, D.C. — U.S. Rep. Bob Etheridge (D-Lillington) voted today for legislation that will make college more affordable for N.C. students.

Etheridge voted for H.R. 5, the College Student Relief Act, which would cut the interest rate on federally subsidized Stafford Loans from 6.8 percent to 3.4 percent over five years.

“As the first member of my family to graduate from college, I know firsthand that affordable access to college is the key to the American Dream for working families,” said Etheridge. “Education is the great equalizer in our society because it gives each citizen the opportunity to make the most of his or her God-given abilities. Congress must reverse the failed priorities of the past and invest in education for greater opportunities for all Americans.”

The legislation will help 5.5 million undergraduate American students. In North Carolina, there are 92,224 students in North Carolina who receive federal student loans, with the average debt per student at $13,332. Under this legislation, the average N.C. student starting school in 2007 would save $2,200 under the life of the loan. The average N.C. student starting school in 2011 would save $4,270.

Tuition and fees at public universities have increased by 41 percent after inflation since 2001 and tuition and fees at private universities have jumped by 17 percent after inflation. Interest rates have also jumped by almost two percentage points. In 2006, the President signed into law a budget bill that cut $12 billion to student loans.

The bill is fully paid for by making modest reductions in certain lender and guaranty agency subsidies in order to make the student loan program more efficient and effective for students and for American taxpayers.

Some institutions in North Carolina are concerned that because North Carolina’s state loan program is constructed differently than other states, there may be a chance that the legislation could inadvertently increase the interest rate in North Carolina. During floor debate on the legislation, Etheridge received an assurance from the Chairman of the Education and Labor Committee that as the bill progresses through the legislative process, Congress will work to ensure that there are no adverse effects for North Carolina.

The legislation is only the first step that Democrats will take in the 110th Congress to make college more affordable. Democrats plan to introduce legislation that will increase the maximum Pell Grant scholarship as well as additional investments in college aid.