A recent Congressional bill seeking to shift $20 billion of federal subsidies for college loan… A recent Congressional bill seeking to shift $20 billion of federal subsidies for college loan lenders toward programs that would broadly increase financial aid to college students has been sent to President Bush for approval.

Among other components, the College Cost Reduction and Access Act, which was sent to President Bush last Wednesday, would reduce the interest rate on federally subsidized student loans from 6.8 to 3.4 percent over a five-year period and raise the maximum level of Pell Grants – the most common federal need-based scholarships.

In a conference call from the Capitol with other Democratic Party members, House Majority Leader Steny Hoyer (D-Maryland) said the fact that college costs had increased by 40 percent in five years was a determining factor in his party’s push for the bill.

At Pitt, in-state tuition for the College of Arts and Sciences has risen by more than 53 percent in the last five years, increasing from $7,868 in 2002 to its current level of $12,106.

Hoyer estimated that because of current costs “200,000 [students] delay attending or skip altogether” every year.

“Our country cannot afford to lose these young people,” Hoyer said.

If the bill passes, Pell Grants will rise from their current maximum amount of $4,310 to $5,400 by 2012. By next year the maximum Pell Grant would rise by $490.

According to Hoyer’s estimate, 186,323 Pennsylvania college students receive Pell grants. Pitt’s office of Admissions ‘ Financial Aid could not be reached as to the number of students currently receiving Pell grants.

Referring to the Pell Grant as “the staple of educational assistance in this country,” Rep. Jason Altmire (D-Pennsylvania), a co-sponsor of the bill, called the Act the “largest increase [in college financial aid] since the GI Bill.” He estimated that by cutting the interest rate in half, students would eventually save $4,500 over the life of their federally subsidized loans.

Rep. Tim Bishop (D-New York) championed the section of the bill that would raise the level of income by which a family can receive the maximum Pell Grant from $20,000 to $30,000 – promising that this would allow a large influx of students to receive the Grant’s full benefits.

Additionally, the legislation would provide loan forgiveness to individuals that work in certain public service fields for 10 years. Among the professions entitled to the loan forgiveness program are members of the military, law enforcement officers, librarians, early childhood educators, firefighters, nurses and public defenders.

34-year-old Rep. Chris Murphy (D-Connecticut) used his past college experience to buffer the importance of the loan forgiveness program. He said the current average starting salary for public school teachers, which was $31,704 during the 2003-04 school year, was insufficient with respect to drawing enough highly talented applicants.

“I had a lot of friends [in college] who wanted to pursue public service, but were wary of the salaries of [teachers] placed next to the graduate school[ing] needed,” Murphy said.

Rep. John Sarbanes (D-Maryland) agreed. “If we can incentivise people to go into these [public service] careers, we should do that