Rep. Lofgren Votes for Single Largest Expansion in Higher Education since the GI Bill

Bill Would Increase Maximum Pell Grant Scholarship by $500

Rep. Zoe Lofgren (D-San Jose) today voted in favor of H.R. 2669, the College Cost Reduction Act of 2007, which provides for the single largest expansion in funds for higher education since the GI bill. The bill cuts interest rates in half on subsidized student loans over the next five years and increases the maximum Pell Grant scholarship by $500 over the next five years, and does it in a fiscally responsible matter. The bill reduces excess subsidies that the federal government pays to lenders in the college loan industry. Congress has ensured that no new costs will be incurred by taxpayers and that pay-as-you-go budget rules are observed.

The bill would:

• Cut excess subsidies paid by the federal government to lenders in the student loan industry.
• Make student loan payments more manageable for borrowers by guaranteeing that borrowers will not have to pay more than 15 percent of their discretionary income in loan repayments, and allowing borrowers in economic hardship to have their loans forgiven after 20 years.
• Increase federal loan limits to provide borrowers with additional assistance in paying for college and to help them rely less on costlier private loans.
• Provide upfront tuition assistance to qualified undergraduate students who commit to teaching in public schools in high-poverty communities or high-need subject areas.
• Provide loan forgiveness for first responders, law enforcement officers, firefighters, nurses, public defenders, prosecutors, early childhood educators, librarians and others.
• Establish a partnership with federal, state and local government entities and philanthropic organizations through matching challenge grants aimed at increasing the number of first generation and low-income college students.

“The College Cost Reduction Act of 2007 reaffirms America’s commitment to higher education for all,” noted Rep. Zoe Lofgren. “This is a signature moment, not only for our college students and their families, but also for our economic competitiveness and our future as a nation. If we are to maintain our position in the world, we must work to ensure that every qualified American student is given the opportunity to succeed and contribute. In California alone there are 228,489 students using need-based federal student loans each year to attend public universities who would benefit from a cut in interest rates and an additional 646,664 who could benefit from an increase in the Pell Grant. This bill will help make college affordable to America’s students while at the same time maintaining fiscal responsibility.”