A new federal bill increasing federal loan and grant programs by $20
billion was signed into law yesterday, affording federally indebted
students at Portland State and across the nation new options for paying
off their loans.
The College Cost Reduction and Access Act of 2007, which will go into
effect during the 2008-2009 academic year, earned the signature of
President Bush Sept. 27, after gaining approval in the U.S. House and
U.S. Senate in early September.
The bill is the biggest piece of federal legislation granting money to
higher education since the GI Bill was passed in 1944, and it will
create a new federal loan repayment plan based on the income level of
graduates, lower interest rates for loan participants with low- and
middle-income status, and raise the maximum amount awarded for the
federal Pell Grant, which over five million students utilize.
Twenty-three percent of students at PSU make use of the Pell Grant, and
the average amount of student loans a graduate must pay is $18,085.
Seventy percent of PSU's student population graduates with student
loans to pay off.
