Washington, D.C. —- U.S. Rep. Bob Etheridge (D-Lillington) today voted to pass the final version of legislation that will make college more affordable for N.C. students.
Etheridge voted for H.R. 2669, the College Cost Reduction Act, which would be the largest federal investment in college financial aid since the GI Bill in 1944 at no new cost to taxpayers. The House vote was 292 — 97, and the bill now heads to the President’s desk.
“This legislation will make a real difference to students and working families paying for college,” said Etheridge. “By making college more affordable, more students will have access to the American dream.”
H.R. 2669 will cut the interest rate on federally subsidized Stafford Loans in half over the next five years, from 6.8 percent to 3.4 percent. In North Carolina, there are 92,224 students 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 will save $2,200 throughout the life of the loan. The average N.C. student starting school in 2011 will save $4,270.
The legislation will also raise the maximum value of the Pell Grant scholarship by $1,090 by 2012. The maximum Pell Grant will reach $5,400 by 2012, up from $4,050 in 2006. 146,917 students in North Carolina could benefit from this raise. Tuition and fees at four-year public universities have increased 35 percent over the last five years.
Because North Carolina has a unique system where student loans are disbursed through a state-run non-profit, the bill includes language at Etheridge’s request to ensure it does not unintentionally have the adverse effect of raising loan costs on North Carolina students.
H.R. 2669 is fiscally responsible, 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.