House Backs Student Loan Interest Cuts
The House on Monday approved a higher-education bill aimed at making college more affordable by bringing student loan rates down to their lowest levels in nearly 20 years and expanding grants to low-income students.
It will also establish new grants for states to improve teacher training, write off up to $5,000 in student loans for teachers and child-care workers who take jobs in poor school districts and create new programs to help disadvantaged students reach college.
The bill is likely to be approved by the Senate as well, possibly today.
“This legislation will benefit millions of students across the country in pursuit of higher education,” said Rep. William F. Goodling (R-Pa.), chairman of the Education and Workforce Committee.
“It will make higher education more affordable,” said Rep. William “Bill” Clay of Missouri, the top Democrat on the education committee, who also praised its provisions for minorities and historically black colleges.
A new formula effective July 1 will bring interest rates on federally backed student loans to a 17-year low of about 7.43%, down from 8.23%. But with a subsidy in the bill, the banks would actually be getting 7.93%.
The bill would raise Pell grants to poor students from $3,000 to $5,800 in 2003 and 2004.
The legislation also includes programs to combat alcohol abuse on campus, and to help low-income students get child care.
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