June 14, 2007
DC - This week, with a vote of 30 to 16, the U.S. House of Representatives Education and Labor Committee approved legislation that would increase financial aid for college students.
Providing nearly $20 billion over the next five years, the College Cost Reduction Act of 2007 would be the largest investment in college financial aid since the 1944 GI Bill, according to the committee's website.
The new act, HR 2669, will not mean more costs for U.S. taxpayers. According to a press release from the Education and Labor Committee, the bill will pay for itself by "reducing excessive federal subsidies paid to lenders in the college loan industry."
Rep. George Miller, chairman of the committee and sponsor of the legislation, said, "Today's vote is a significant victory for America's students and their families. This legislation represents Congress's biggest effort since the GI Bill was passed more than 60 years ago to help Americans pay for college. We are committed to growing and strengthening America's middle class. A key to that goal is making sure that every qualified student can afford to go to college, and this vote takes us a tremendous step in the right direction."
Miller continued, saying, "Not only does this legislation meet our promise of making college more affordable, but it does so in a fiscally responsible way, at no new cost to taxpayers. For far too long, college costs have grown faster than families' ability to pay them. With this bill, we are saying that help is on the way."
The new legislation, however, is not supported by all. Howard McKeon (R-CA), senior Republican member of the committee, strongly opposed the bill. He said, "It's quite possible that the bill we're poised to consider is longer than the original Higher Education Act of 1965. It was made public just one day ago, and not a single hearing has been held on it. That, in itself, is reason for concern."
The College Cost Reduction Act of 2007 will now be voted on by the full House.
"It is important for students and their families to have options to aid them in funding their college education," said EdFed customer service representative Jodie Corzano. "This bill will provide further financial aid options."
"To help students get the most out of their financial aid, EdFed offers consolidation options," said Corzano. "This helps students to save time and money with student loans that are sometimes a necessary element of obtaining a higher education."
As a leader in the student loan industry, EdFed is dedicated to helping students and graduates realize all of their educational goals and meet their student loan and consolidation needs.