[Congressional Record (Bound Edition), Volume 153 (2007), Part 17]
[Senate]
[Pages 24447-24448]
[From the U.S. Government Publishing Office, www.gpo.gov]




                     THE COLLEGE COST REDUCTION ACT

  Mrs. LINCOLN. Mr. President, I was absent for the vote on September 7 
on final passage of the College Cost Reduction Act of 2007 due to an 
official trip that I took to Iraq with the Senate Foreign Relations 
Committee. Had I been in Washington during the vote on final passage, I 
would have supported this important piece of legislation as I did when 
the Senate passed its version in July.
  The rising costs of a college education have significantly increased 
the financial burden on college students and their families in recent 
years. The largest increase in higher education aid since the G.I. 
bill, the College Cost Reduction Act will increase student aid to low-
and middle-income students by $17.4 billion over the next 5 years. It 
also increases the maximum Pell grant by $500 to $4,810 next year and 
incrementally increases it until it caps at $5,400 in 2012. Further, 
the bill will help students manage their debt by capping student loan 
payments at 15 percent of their monthly income and reducing the student 
loan interest rate from 6.8 percent to 3.4 percent. In addition, the 
legislation will create a pilot program that reduces the amount of 
federal subsidies paid to student lending institutions and redirects 
the funds directly to students. The result will save students real 
dollars, save taxpayers money, and inject competition into the loan 
program.

[[Page 24448]]

  Increasing the number of college graduates is one of the best 
investments that we as a nation can make, and I am proud that this 
Congress has worked to make college a reality for more Americans. The 
improvements contained in this legislation will expand the options 
students have to attend college and pay for higher education for years 
to come. Moreover, it will improve the quality of life for our citizens 
and our economy by preparing our workforce for the demands of an 
increasingly competitive marketplace.
  Mr. KERRY. Mr. President, too many young people, from all walks of 
life, are either struggling to pay for college or flatout can't afford 
it. Those who aren't able to incur such steep costs are not only losing 
out on a degree, but setting themselves up to face a lifetime of lost 
opportunities, as study after study shows college graduates are the 
most attractive candidates for the fastest growing and best paying jobs 
of tomorrow. Greater college access and financial assistance is 
critical to making the American dream a reality for all. This bill 
strengthens educational resources for low-income students, giving every 
child the chance to succeed. It will mark the largest increase in 
student aid since the Montgomery GI bill and ensures that college is 
within the reach of children all over the country.
  Today, families in New England with students in a community college 
spend 17 percent of their annual income to cover the cost of college 
for 1 year, while families nationally spend 13 percent. According to an 
analysis by the Massachusetts Board of Higher Education released last 
year, more than two thirds of families in Massachusetts last year still 
required approximately $6,300 beyond financial aid to afford a college 
education. Faced with such a hardship, many Massachusetts students drop 
out, saying the costs are too steep. Those who do complete their 
degrees are often saddled with thousands of dollars in student loans--
which can take years, often decades, to pay off.
  The conference report cuts roughly $20 billion from lender subsidies 
and uses the funds to increase aid to college students and reduce the 
interest rates they must pay on their loans. It halves interest rates 
on subsidized student loans, from 6.8 percent to 3.4 percent, over 4 
years and increases the Pell grant by $1,090 increase in the maximum 
Pell grant award over 5 years. It also allows for a flexible repayment 
option and loan forgiveness after 10 years for certain public-sector 
employees.
  I am also proud that the conference report included language to fund 
key Massachusetts Upward Bound programs. Upward Bound provides 
fundamental support and college preparation for low-income students and 
has a strong record of increasing the rate at which low-income students 
graduate from institutions of higher learning. Once the President signs 
this legislation into law, 187 new and existing Upward Bound programs 
that scored above a 70 in the most recent grant competition will be 
funded from fiscal year 2008 to fiscal year 2011. As a result, Upward 
Bound services will be provided for an additional 12,000 students. I 
want to congratulate all of the new and refunded Upward Bound programs 
in my State--Holyoke Community College, North Shore Community College, 
Massachusetts Institute of Technology, Suffolk University and Wheelock 
College. Thank you for providing these necessary services to 
Massachusetts students and I urge you to keep up the good work.
  This legislation is absolutely vital to securing the opportunity of 
higher education for all and making our country more competitive. I 
thank Senator Kennedy for his hard work and vision and I wholeheartedly 
support this legislation.

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