Bill to ease financial troubles
Published Oct. 2, 2007
President George Bush signed a piece of legislation into law on Sept. 27 that could ease financial worries for college students.
The College Cost Reduction and Access Act, which passed unopposed by all Democrats in both the House of Representatives and the Senate — and garnered support from some Republican lawmakers on Capitol Hill also — will provide more funding for Federal Pell Grants and reduce interest rates for student loans.
In a speech preceding the signing of the bill, Bush lauded the Federal Pell Grant program, calling it one of the country's "most important and successful education initiatives."
"I have the honor of signing a bill that will help millions of low-income Americans earn a college degree," Bush said. "I love the fact that this country is dedicated to helping people who want to realize a dream."
Rep. George Miller, D-Calif., chairman of the House Education and Labor Committee, issued a statement praising the efforts of a "Democratic Congress" for making college more affordable.
"This bill will help ensure that no qualified student is prevented from going to college because of the cost," Miller stated. "This legislation shows how the Congress and the president can work together to accomplish important things on behalf of American families."
Maria Speiser, spokeswoman for Sen. Claire McCaskill, D-Mo., said McCaskill was satisfied by Bush's decision to sign the bill into law.
Scott Baker, spokesman for Rep. Kenny Hulshof, R-Mo., said the congressman was "pleased" with the version of the bill approved by Bush.
"It's a good bill," Baker said. "It's good for students."
Hulshof voted "nay" when the House version of the bill passed on July 10, 273-149, citing third-party beneficiaries to the bill who would supersede reception of funding by students.
The Senate bill was approved July 19 in a 78-18 vote.
The final bill passed Sept. 7 in the Senate 79-12 and in the House 292-97.
Hulshof did not vote on the bill that reached Bush's desk. The final bill was the result of a compromise between the two houses in a conference committee.
Having received executive approval, the legislation will increase maximum Pell Grant awards from the current $4,310 to $5,400 by 2012.
Interest rates for Stafford Federal Student Loans will drop 0.5 percentage points and 0.8 percentage points for Federal Parent Loans for Undergraduate Students.
Students entering the public sector after college will have a tenth of student loan debt forgiven for each year they are not enrolled and making less than $65,000.
Missouri congressmen Rep. Todd Akin, Rep. Roy Blunt and Sen. Christopher "Kit" Bond — all members of the GOP — cast votes against the bill.
U.S. Secretary of Education Margaret Spellings stated in a July 10 news release that the initial House version of the bill "fails to meet" the needs of an American student.
In a second statement on Sept. 27, after the signing of the bill, Spellings again criticized the bill.
She stated the legislation could take away funds from the Pell Grant program and instead provide them to "poorly targeted policies and new mandatory programs."
"This bill also fails to resolve implementation issues the administration raised regarding changes to student loan programs," Spellings stated.