HOUSE PASSES LARGEST STUDENT FINANCIAL AID INVESTMENT SINCE G.I. Bill September 07, 2007

WASHINGTON, D.C. -- U.S. Rep. Lincoln Davis today voted to approve the conference report of legislation that would make the single largest investment in college financial aid since the GI Bill in 1944. The College Cost Reduction Act of 2007increases student aid by nearly $18 billion, at no additional cost to U.S. taxpayers.

"No student with the talent and the desire to achieve the dream of going to college should miss the opportunity because they can't afford to pay," said Davis. "This bill gives students of hardworking families the help they need to pay for college."

Davis continued, "an investment in education is an investment in American competitiveness. Tomorrow's workers must have the opportunity to learn the skills they need to compete in today's markets."

Under this legislation, the maximum value of the Pell Grant scholarship would increase by $1,090 over the next five years, reaching $5,400 by 2012. Children of hard working lower income and middle class families can benefit from this increase.

To reduce the cost of loans for millions of student borrowers, the legislation would cut interest rates in half on need-based student loans, from 6.8 percent to 3.4 percent over the next four years. - a $4,400 savings over the life of the loan for the average student borrower. Roughly 6.8 million students take out need-based loans each year.

In addition, the legislation guarantees that borrowers will never have to spend more than 15 percent of their yearly discretionary income on loan repayments and allows borrowers in economic hardship to have their loans forgiven after 25 years. This gives graduating students the freedom to choose their profession based on their skills, interests, and the needs of their community, rather than their economic situation.