House And Senate Reach Agreement On College Cost Reduction Act

Abstract:

Members of the House and Senate met yesterday to hammer out a compromise on the College Cost Reduction and Access Act of 2007, a bill that uses reconciliation language to cut subsidies to student loan providers and increase need-based aid like the Pell Grant. Under a deal reached last night, the conference report would increase the Pell Grant to $5,400 and lower the interest rate on subsidized Stafford loans to 3.4 percent over the next five years. Republicans expressed “regret” that a more compromising tone could not be reached in finalizing the legislation. Democrats were elated that the bill would “ease the financial burdens college costs impose on students and families and expand college access for low-income and minority students.”

The full article was originally published in NASFAA’s Today’s News on 9/6/07.