A bill now on President Bush’s desk would halve the interest rate on federal student loans and make more grant money available to students in low-income families.
The College Cost Reduction and Access Act would trim the interest rate on federal Stafford loans incrementally from 6.8 percent to 3.4 percent by July 2011.
That would be especially beneficial to students in Niagara and Erie counties, where 80 and 76 percent, respectively, of enrolled four-year college students will graduate college with debt averaging more than $17,000, said Sen. Charles Schumer, D-N.Y.
“In upstate New York, we know the old-time jobs that have been handed down from generation to generation are gone,” he said during a conference call Wednesday. “New jobs are available, but they require a higher education.”
The rate reduction would save the average upstate New York borrower $2,400 over the life of a four-year loan, according to an analysis released by Schumer’s office. This could help off-set a trend in which the cost of attending a public state school increased 24 percent from 1999-2000 to 2004-05 in New York, the analysis said.
“This is so, so important because these days, going to college can determine a young person’s fortune, but it shouldn’t cost one,” Schumer said.
In addition to trimming interest rates, the bill would increase funding for the Pell grant program from $840 million to $2.6 billion by 2017. The maximum Pell grant, which goes to students in low-income families, would increase by about $1,100 to $5,400 by 2012, while students would be eligible to receive two Pell grants per year by 2009.
These initiatives would be paid for in part by cutting close to $20 billion in subsidies to private student loan providers.
“We gave that money to the students, where it belongs.” Sen. Edward Kennedy, D-Mass., said in a release.
Another bill under consideration would provide relief to people already repaying loans, Schumer said. That legislation would allow unlimited consolidations of federal loans at lower interest rates; current rules restrict borrowers to one consolidation.
After initially indicating a veto of the bill, Schumer is confident that Bush will soon sign it into law. If so, it will take effect Oct. 1.
The Senate passed the bill 79-12, while the House of Representatives passed it 292-97.
Local News
EDUCATION: Bill would boost college funds
Interest rate reduction, increase in grant money among legislation’s highlights
- Local News
-
-
Snow won't last
The climate trend that’s emerged this winter — brief spells of cold and minimal snow cover, broken up quickly by warmth and rain — apparently will hold into spring.
-
Mild winter helps cut costs
The mild, warm, snowless streak of weather that snapped this past weekend allowed highway departments to tackle unseasonable projects early and avoid the high costs of snow plowing.
-
Sweetheart deals for local businesses
Local retailers will have a lot to celebrate this Valentine’s Day, but the joy will be mixed with exhaustion on what promises to be a busy day of deliveries and panicked last-minute purchases.
-
Lake levels cause concern
Land owners along Lake Ontario are concerned about a potential International Joint Commission plan which may allow water levels to reach higher highs and lower lows.
-
Tigers trio win sectional titles
Making a successful title defense, Lyndonville’s Sam Recco led a contingent of three Tigers to capture Section V Division II (small schools) crowns Saturday night at R.I.T earning trips to the upcoming state championships.
-
Hospice residence construction continues
The construction of the new Martin-Linsin Hospice Residence, which is now well under way just behind the Hospice of Orleans office building on Route 31 in Albion, will allow Hospice to provide care and assistance for those patients and their families.
-
Library construction, fundraising hit milestones
The project to build a new library in Albion is seeing a lot of green — both in the foam insulation that is being added at the South Main Street construction site and in Swan Library’s fundraising effort.
-
Albion plans for summer
Village officials heard details about this summer’s Albion Strawberry Festival and another big event that could bring visitors back to the village later in the summer — if concerns about street usage are cleared up — during Wednesday’s board meeting.
-
Theater impact grant formally announced
The National Park Foundation, the official charity of America’s national parks, has awarded the Erie Canalway National Heritage Corridor a 2012 Impact Grant to support the launch of the Theatre on Main Street project in Albion in collaboration with the Albion Main Street Alliance and the Western Erie Canal Alliance.
-
Inter-county collaboration
The Orleans County Legislature finalized a formal alliance with their Niagara County counterparts Wed-nesday, a move leaders from both counties said will lead to reduced costs and increased services.
- More Local News Headlines
-







