Just as I was writing all of this I got an email from Senator Levin's office about the financial aid bill. Ironic that it came right as I was putting all of these posts in....maybe big brother really is watching... In any case - here is his email:
Dear Mr. Varnum:
I thought you would be interested in action the Senate has taken to help students and their families afford college tuition.
Access to a higher education is increasingly important in a competitive, global economy where training beyond a high school education is frequently required. On average, a student who has earned a bachelor’s degree will earn 70 percent more than a student who has only a high school diploma, which amounts to significantly greater earnings over an individual’s lifetime.
On September 7, 2007, the Senate passed the conference report to the College Cost Reduction Act (H.R.2669). This legislation currently awaits the President’s signature, which is expected soon. It opens the door to many who have been denied educational opportunity because they could not afford the cost of higher education. This legislation represents the single largest federal investment in higher education since the GI Bill and includes an additional $17 billion in college aid. This is a great victory for Michigan students and families and those across America. Michigan will receive over $80 million in new assistance above the current $429.8 million for the upcoming academic year and an additional $689.6 million over the next five years.
This legislation also raises the maximum Pell Grant award from $4,050 to $5,100 in 2008 and raises the income level limit below which a student is eligible for the maximum Pell grant. In addition, it limits monthly student loan payments, provides loan forgiveness for borrowers who commit to public service, and simplifies the financial aid process.
Finally, this legislation reforms the student loan system to ease the burden of debt on student borrowers. Interest rates will be cut in half, from the current 6.8% to 3.4% for undergraduate students with subsidized loans. Also, monthly student loan payments will be limited to no more than 15% of the borrower’s discretionary income, so students will no longer have to decide between buying groceries and paying off their loans. For graduates with careers in public service, such as teaching, nursing, and law enforcement, the balance of federal student loans will be forgiven after 10 years of service.
You may be interested in reading my statement before the full Senate, located on my website, at [http://www.levin.senate.gov/senate/statement.cfm?id=279643]
and a recent column I wrote, also on my website, at [http://www.levin.senate.gov/newsroom/release.cfm?id=282100].
Sincerely,
Carl Levin
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