House Democrats Seek Online Testimony From Students and Parents on Making College More Affordable

House Democrats Seek Online Testimony From Students and Parents on Making College More Affordable

Washington, D.C. - Responding to spiraling higher education costs, Congresswoman Betty McCollum (MN-04) joined her House Democratic colleagues in introducing legislation called the Reverse the Raid on Student Aid Act that would cut interest rates in half on college loans for student borrowers with the most financial need. In addition, McCollum also joined House Democrats today in launching a national online forum to give college students and parents the opportunity to communicate directly with Congress on the effects of rising costs of college tuition and mounting student loan debt.

"The high cost of tuition should never prevent a qualified student from getting a college education," said McCollum. "Democrats are working to reverse the Republican raid on student aid, make college more affordable and boost America's economic competitiveness by investing in America's students."

While Minnesota students graduate from college with an average of $16,400 in debt, Republicans in Congress have cut $12 billion from federal student aid programs in the largest raid on student aid ever. Just last month, House Republicans rejected a Democratic proposal to make college more affordable by cutting interest rates on student loans intended for students who are in the most need. McCollum said that this new bill reflects the kind of serious investment that America must make to ensure college access for all students and remain the world's economic leader.

The Reverse the Raid on Student Aid Act cuts interest rates in half, from 6.8 percent to 3.4 percent, for students with subsidized loans - which go to students with the most financial need - and from 8.5 percent to 4.25 percent for parents, starting in July 2006.

Under this new legislation, the typical undergraduate student borrower would save $5,600 over the life of the loan. According to the College Board, from 2001 through 2006, the price of tuition and fees at four-year public institutions has increased by 40 percent.

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