February 2007

Good news for Hawaii college students and their families

Dear friend:

As a former student and instructor in the UH system, I understand the sacrifices made by so many island families and individuals struggling to get through school. That's why I cosponsored legislation to make that struggle a little easier. I am happy to report that the bill, the College Student Relief Act (H.R. 5), passed the House of Representatives on January 17.

In today's rapidly evolving knowledge-based economy, a college degree is the door to opportunity and a financially secure future. Yet, the costs of attending college continue to skyrocket - putting college out of reach for more and more students. Tuition and fees at public universities across the country have increased by 41% in the last five years. We have to find ways to make a college education more affordable for more people.

Every year, 9,000 Hawaii students (5.5 million nationally), most of them from low and middle income families, use federally-subsidized Stafford loans. The College Student Relief Act cuts the interest rate for these loans in half over five years. The phased-in cut is necessary to comply with Congress' new Pay-As-You-Go standard, which requires that the cost of new measures be offset by increased revenue or corresponding spending cuts to prevent an increase in the Federal deficit.

Today, the typical graduate of a four-year college or university in Hawaii who takes advantage of Stafford loans owes more than $14,000 on graduation day. With the cut in interest rates, the average student starting school this year in Hawaii will save $2,360 over the life of the loan. In 2011, when the interest rate has been cut fully in half, the typical Island student starting school will save $4,580 - more than students in 42 other states.

College affordability is a critical issue for thousands of Hawaii families. For many, cutting the cost of student loans will be the difference that leads to graduating with a college degree. That's why I will continue to back legislation like the College Student Relief Act.

 

Aloha,

Neil Abercrombie

Member of Congress