Stabenow outlines bill to cut higher education costs

U.S. Sen. Debbie Stabenow, D-Mich., assured a group of Grand Valley students that financial aid help is on the way from Washington. Stabenow highlighted the College Cost Reduction Act of 2007 during a speech at the Kirkhof Center Sept. 14. The bill passed the senate and has been sent to President Bush for his signature.

Stabenow said student aid will be increased for low-income and middle-income students by $20 billion. “This is the largest increase since the G.I. Bill of 1944,” said Stabenow. “We need to reverse the pattern of cutting funds to higher education.”

The senator pointed out several details of the bill including:

• Increasing Pell Grants by $500 next year and up to $5,400 by 2012
• Cap monthly payments for federal loans at 15 percent of the borrower’s discretionary income
• Cut interest rates on new subsidized Stafford loans from 6.8% to 3.4% by 2011
• Forgive the remaining balance of federal loans for students working at least 10 years in public service careers
• Encourage high-achieving students to teach by offering scholarships of $4,000 per year to students who commit to teaching high-need subjects in high-need schools

Stabenow said 66 percent of undergraduates in Michigan have loans to repay when they finish college. The average amount is $19,000. The average amount for a Grand Valley graduate is nearly $18,000. Stabenow said she also wants to find ways to reduce the cost of textbooks.

AUDIO CLIPS:

• Stabenow said payments for federal student loans will be capped at 15 percent
  
• Stabenow said student loan debt will be forgiven for those in public service careers
  
• Stabenow said new grants are available for students who teach in high-need schools
  
• Stabenow said Pell Grants will increase $500 next year and up to $5,400 by 2012