On July 11, the House of Representatives passed the “College Cost Reduction Act of 2007,” a bill designed to lessen the burden of college tuition costs for middle- and lower-income students by providing more federal grants and lower interest rates on student loans. Critics say the bill would limit the services lenders can provide to student borrowers, and the White House issued a statement indicating the President would veto the bill on the basis that it does not adequately address the needs of low-income students.
If passed, the bill would reduce interest rates on subsidized loans by half within the next four years. It would expand the Pell Grant program to include more students and offer more extensive assistance, and it would provide additional tuition assistance or loan forgiveness for students entering professions that serve the public good, such as teaching.
Funds currently directed to private loan companies as subsidies for student loans would be reallocated to pay for the provisions of the bill.
In the House, 226 Democrats and 47 Republicans voted in favor while 149 Republicans and no Democrats voted against. The Senate received the bill, but has not yet put it to a vote.
- Rachel Bowers
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