Rep. Walz Votes For College Cost Reduction Act Of 2007
Press Release
REP. WALZ VOTES FOR COLLEGE COST REDUCTION ACT OF 2007
Today, Rep. Tim Walz voted for H.R. 2669, the College Cost Reduction Act of 2007, which would provide the federal government's single largest investment in higher education in more than 60 years. The legislation passed the House 273-149.
A former teacher at Mankato West High School, Walz said, "As an educator, I've seen some of my most promising students prevented from realizing their potential because their families simply couldn't afford to send them to college. Today, the House affirmed that what should matter is where these young people are going, not where they come from."
The legislation would drastically increase federal dollars available for college financial aid, adding about $18 billion over the next five years.
"This bill is a victory for middle-class families and for our country's economic security," said Walz. "America's economic strength and its place in the world depend on the ingenuity and skills of our workforce. College education has never been more important to our young people or to our country, but it has never been more difficult to afford."
The legislation would help millions of students and families pay for college, but does so at no new cost to U.S. taxpayers. The bill pays for itself by cutting $19 billion in unnecessary federal subsidies for private lenders. The bill would also provide nearly $1 billion in deficit reduction to the federal budget.
About 6 million low- and moderate-income students would benefit from the legislation, which would increase the maximum value of the Pell Grant scholarship by $500 over the next three years. Combined with other increases, either passed or proposed in the House of Representatives, the College Cost Reduction Act will help the maximum Pell Grant reach $5,200 by 2010.
The College Cost Reduction Act also cuts interest rates on federal student loans from 6.8 percent to 3.4 percent throughout the next five years, saving the average borrower $4,400 over the life of their loans. About 67,468 Minnesota students use federal student loans to help finance their education each year.
Source