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College Cost Reduction Act
Sen. Salazar Praises Passage Of College Cost Reduction Act,
Bringing Over $465 Million In Relief For Colorado Students
Bill expands federal programs to make college more
affordable, Now goes to president for signature
As the cost of college continues to skyrocket, United States Senator Ken Salazar
today supported Senate passage of The College Cost Reduction Act of 2007 which
will provide over $465 million in additional grants and loans over the next five
years to help Colorado students afford a higher education. This bill will expand
the federal grant and loan programs providing much needed relief that will make
college more affordable and more accessible for thousands of young people in
Colorado. The bill that passed the Senate today will now go to the President for
signature.
“In a competitive global economy, a college education is more important than
ever,” said Senator Salazar. “Yet the cost of college is quickly outpacing many
family incomes and federal aid has failed to keep up. The rising cost of college
has put the dream of a college education out of reach for many young people.
More and more students that put their education first, end up graduating with
unmanageable debt,” added Salazar.
In Colorado alone, the average cost for attending a public college has increased
by 38% over the last five years. Over half of Colorado college seniors are
graduating with an average debt of over $16,000. In Colorado, on average, 27
percent of a family’s income is needed to pay for one year at a four-year public
college and after financial aid. Specifically, the College Cost Reduction Act of
2007 will:
- Increase need-based grant aid and increase college access for low-income
students by increasing the maximum grant for Pell grant-eligible students by
$500 next year and to $5,400 by 2012. This means that low-income Colorado
students will be eligible for an additional $29,360,000 in need-based grant
aid next year and an additional $318,774,000 over the next five years.
- Cap the federal student loan payments at 15 percent of the borrower’s
discretionary income, bringing needed relief to student with excessive loan
burdens.
- Forgive the debt borrowers who continue in public service careers, such as
nursing, teaching, or law enforcement for 10 years.
“Federal student aid programs gave me the chance I needed to achieve success.
I believe we should provide all Americans with that same opportunity,” added
Salazar.
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