On Friday, Congress voted to approve the College Cost Reduction Act, making President Bush's signature the last barrier to the legislation. If approved, the act would provide an increase in money to students in need of federal financial aid, Robert Zellers, director of scholarships and financial aid, said.
While the act encompasses several revisions to federal student aid, Zellers said, the bill has two main provisions that will affect students the greatest.
The act would increase the federal Pell Grant gradually over the next five years, eventually ending at a maximum of $11,600 per student for the 2012-2013 school year, according to the National Association of Student Financial Aid Administrators' Web site. The current Pell Grant maximum is $4,700 per student.
"The Pell Grant has been frozen. This would be the largest increase in years and would really help a lot of needy students," Zellers said.
Aside from changes in the Pell Grant, Zellers said, the act would reduce interest rates on student loans. The NSAFAA Web site said the rates would be cut in half on federally subsidized student loans.
Sophomore chemistry major Rob Burns said he would definitely appreciate the extra federal money. He said many students could benefit from the act because so many of them have financial aid.
Psychology counseling graduate student Russell McLean said he also sees the benefits the act will have for college students, but warns them to be cautious.
"A student still needs to understand interest rates and applying for grants in order to fully take advantage of the act," he said.
Daniel Reagan, an assistant professor of political science, said much of the opposition to the bill is centered around its funding. Reagan said the bill plans to take federal funding away from banks and commercial student loan companies and give it directly to students.
"Some loaners have federal insurance to try and protect their investments," he said. "The bill would take some money away from those funds."
A statement released by the Federal Family Education Loan Program, which represents a collection of the commercial loan companies, said the act would have an adverse effect. The statement said the changes would lead to increased rates on loans to many families because they are already dependent on the current program and would have to pay as the lenders lose money.
"These proposals are likely to increase loan volume of the government-run Direct Loan program, which would increase the federal debt," according to the statement.
President Bush must now decide between vetoing the bill or signing it into law.
Zellers said that initially Bush threatened to veto the bill, but has since withdrawn the threat.
Read More
Three Air Jam teams take home the win
October 12, 2012Nineteen teams shimmied, shook and flipped for a sold out John R. Emens Auditorium on Thursday night during the 25th annual Air Jam.
Bill Clinton Speaks at North Central High School
October 12, 2012Former President's Speech Could Have Effect on State Senate Race
