Students to Receive an Additional $3.1 Million in Grants and Loans Next Year
Sep 07 2007
Delaware students will receive an additional $3.1 million in financial aid from the College Cost Reduction and Access Act of 2007, which passed the Senate today with support from Sen. Tom Carper (D-Del.).
This year, the state of Delaware received $21.9 million in Pell Grant aid for low-income students. The College Cost Reduction and Access Act will provide an additional $3.1 million in grants for the next school year, and $34.5 million over the next five years. The federal Pell Grant Program provides grants to students based on their financial need, school costs and other factors. Students also may receive a 50 percent cut in interest rates on federal loans, from 6.8 percent to 3.4 percent.
The legislation also increases financial support for historically black colleges and universities, Hispanic-serving institutes, and other minority-serving colleges, which includes Delaware State University.
“This legislation recognizes the sky-rocketing cost of higher education in Delaware and that federal financial student aid has not kept up with college costs,” Sen. Carper said. “It was time for Congress to step in and help alleviate the financial obstacles faced by low-income students seeking a college degree. The additional $3.1 million will go a long way to help more Delaware students graduate from college.”
Besides providing additional student grants, the College Cost Reduction and Access Act also combats other burdens college students face. It simplifies the financial aid application process, improves college access programs, holds colleges accountable for rising costs, protects income of working students, and brings good teachers to schools by offering incentives. The bill provides these reforms at no cost to taxpayers by overhauling the student loan industry to put students’ interests first.
The bill that passed today (H.R. 2669) retains key provisions from legislation that passed the Senate in July with Sen. Carper’s support, including:
- A historic increase in need-based grants for students nationwide
- Better repayment options that cap a borrower’s monthly payment based on income
- Loan forgiveness for borrowers entering public service jobs
- Protection for working students by not penalizing their earnings
- Matching grants to states to improve college access
Similar legislation passed the House and Senate earlier this year, and the final version will now go to the President to be signed into law.