Etheridge favors College Cost Reduction Act - Wayne-Wilson News Leader, Fremont, NC

19 July 2007 — U.S. Rep. Bob Etheridge (D-Lillington) voted last Wednesday for legislation that will make college more affordable for N.C. students. Etheridge voted for H.R. 2669, the College Cost Reduction Act, which would be the largest federal investment in college financial aid since the GI Bill in 1944.

“As the first member of my family to graduate from college, I know firsthand that education levels the playing field and gives everyone access to the American dream,” said Etheridge. “Not only will this legislation help thousands of North Carolinians afford a higher education, it also keeps America competitive in the 21st-century global workforce by investing in our workforce.”

H.R. 2669 would reduce the interest rate on federally subsidized Stafford Loans from 6.8 percent to 3.4 percent over five years. In North Carolina, there are 92,224 students who receive federal student loans, with the average debt per student at $13,332. Under this legislation, the average N.C. student starting school in 2007 would save $2,200 throughout the life of the loan. The average N.C. student starting school in 2011 would save $4,270.

The legislation would also raise the maximum value of the Pell Grant scholarship by $500 by 2011. When combined with other Pell Grant increases passed or proposed by Congress this year, the maximum Pell Grant would reach $5,200 by 2011, up from $4,050 in 2006. 162,562 students in North Carolina could benefit from this raise. Tuition and fees at four-year public universities have increased 35 percent over the last five years.

Because North Carolina has a unique system where student loans are disbursed through a state-run non-profit, the bill includes language at Etheridge’s request to ensure it does not unintentionally have the adverse effect of raising loan costs on North Carolina.

H.R. 2669 is fiscally responsible, paid for by making modest reductions in certain lender and guaranty agency subsidies in order to make the student loan program more efficient and effective for students and for American taxpayers. The bill also includes $750 million in federal budget deficit reduction.

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