Washington, DC – Congressman William J. Jefferson (D-LA) cast his vote Friday in favor of H.R., 2669, the College Cost Reduction and Access Act. The bill, the largest education investment since the G.I. Bill will make education more affordable and more accessible to the nation’s students and more specifically the students in New Orleans’ elementary, middle and secondary schools as well as the many college students that call New Orleans home.
 
 “The accessibility and availability of affordable education is a hurdle that many citizens of New Orleans face,” said Jefferson. This act of legislation gives those seeking higher education the opportunities that in the past would have been denied to them due to financial constraints.” 

In Louisiana, this bill will increase Pell and loan aid to over four hundred million dollars for the over ninety thousand Pell recipients in the state and a student, once the program is completely phased in, can see savings of over four thousand dollars in interest during loan repayment.

New Orleans, a city home to numerous four-year, two-year and graduate institutions, will fare well from this legislation—adding more educated people to the city’s workforce and  making loans less burdensome on city workers.

The College Cost Reduction and Access Act, overwhelmingly passed in the House and it is a bill that seeks to address the problem of debt incurred by students as they pursue higher education. The legislation allows for:

• Interest rates on subsidized loans to be cut in half over the next four years and student loan payments to be made more manageable for borrowers by making loan repayment equal to or less than 15 percent of their discretionary income.

• An increase in the maximum Pell Grant to at least $5400 by 2012 as well as an expansion of eligibility by assessing the needs of Pell Grant applicants.

• Tuition assistance to qualified college students who agree to teach in impoverished public schools or in subjects with a dearth of teachers.

• Loan forgiveness after 10 years of public service and loan repayment.

• Investment of $510 million to minority-serving institutions over the next five years.