On January 17th, by a vote of 356 yea to 71 nay, the House passed HR 5 – the College Student Relief Act of 2007. This bill, if passed into law, will cut need based student loan interest rates in half – a huge victory for all young Americans.

It should come as no suprise to you that each of the 71 no votes were from Republicans.

While the battle to pass HR 5 in the House has ended in success – this year’s efforts to make college more affordable are far from over.

It will take a tremendous effort by young voters to get this legislation through the Senate and signed by the President. To join our campaign to help make college more affordable – please sign our online petition for college affordability!

Get your friends to text COLLEGE to 35328 to urge Congress to cut college loan interest rates, increase Pell Grants, end the raid on student aid, and work to make college more affordable.

We voted in record numbers for Democrats in 2004 and 2006, its time to support the Members of Congress who support this bill and keep the pressure on to get the bill passed in the Senate and Signed by the President.

Speaker Nancy Pelosi (D-CA) and Congressman George Miller (D-CA) along with their Democratic colleagues have supported increasing student aid and lowering student loan interest rates. but they need our help to make sure it passes Congress!

Sign the mobile petition in support of the College Student Relief Act of 2007 today to show all members of Congress that our voice is powerful and now is the time to start acting on college affordability.

Sign the Mobile Petition Today:

Text COLLEGE to 3-5-3-2-8

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More About HR 5 – The College Student Relief Act of 2007

“Democrats believe we must invest in our nation’s economic future by helping students and families pay for college. We need a new direction for America so that every qualified student will be able to afford the price of college.” – Rep. George Miller, October 24, 2006

Quick Links

• Summary of HR 5
• HR 5 Student Savings by State
• College Affordability Talking Points

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The College Student Relief Act of 2007 Will…

...cut interest rates in half for undergraduate students with subsidized student loans — those most in financial need — over the next five years at no new cost to taxpayers. The plan will begin by cutting interest rates to 6.12% on July 1, 2007, and will continue to decrease rates until they reach 3.4% in 2011.

Cutting Interest Rates in Half: Phase-In Schedule *All interest rate changes will take place in July 1 of each year

2007	2008	2009	2010	2011
6.12	5.44	4.76	4.08	3.40

Source: House Committee on Education and Labor — http://edlabor.house.gov/micro/studentloans.shtml

Full Text of HR-5 — College Student Relief Act of 2007 (pdf)

College Affordability Campaign Press Release on HR 5

 

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College Student Relief Act of 2007, Savings by State

U.S. Pirg recently released a report analyzing the savings, by state, for students if the College Student Relief Act of 2007 is enacted into law.

To read the full report visit Cutting Interest Rates, Lowering Student Debt

State	Number of Subsidized Loan Borrowers at 4-Year Institutions (2004-2005)	Average Subsidized Stafford Loan Debt for 4-Year Graduate	Savings for the Average Student Starting School in 2007 over the Life of the Loan	Savings for the Average Student Starting School in 2011 over the Life of the Loan
AK	5,119	$12,854	$2,120	$4,110
AL	62,996	$13,572	$2,240	$4,340
AR	39,385	$13,022	$2,150	$4,170
AZ	33,049	$14,801	$2,440	$4,730
CA	228,489	$15,125	$2,490	$4,830
CO	45,588	$13,455	$2,220	$4,310
CT	33,567	$14,263	$2,350	$4,560
DC	16,437	$14,611	$2,410	$4,680
DE	9,534	$13,927	$2,300	$4,460
FL	125,475	$13,663	$2,260	$4,370
GA	83,942	$13,234	$2,190	$4,230
HI	8,752	$14,321	$2,360	$4,580
IA	53,285	$13,944	$2,300	$4,460
ID	26,305	$13,221	$2,180	$4,230
IL	128,765	$14,111	$2,330	$4,510
IN	94,267	$12,967	$2,140	$4,140
KS	42,932	$13,827	$2,280	$4,420
KY	46,963	$13,026	$2,150	$4,170
LA	68,261	$13,077	$2,160	$4,180
MA	98,990	$13,994	$2,310	$4,470
MD	48,484	$14,096	$2,330	$4,510
ME	21,210	$13,173	$2,170	$4,210
MI	143,699	$13,256	$2,190	$4,240
MN	67,468	$13,480	$2,220	$4,310
MO	82,921	$13,305	$2,190	$4,250
MS	36,603	$14,640	$2,420	$4,680
MT	16,212	$12,587	$2,080	$4,030
NC	92,244	$13,332	$2,200	$4,270
ND	17,358	$12,890	$2,130	$4,120
NE	28,021	$13,248	$2,190	$4,240
NH	20,317	$13,853	$2,290	$4,430
NJ	61,221	$14,367	$2,370	$4,600
NM	20,899	$12,792	$2,110	$4,090
NV	10,545	$13,655	$2,250	$4,370
NY	243,696	$14,276	$2,360	$4,570
OH	173,312	$13,495	$2,230	$4,320
OK	47,528	$13,535	$2,230	$4,330
OR	40,721	$14,832	$2,450	$4,740
PA	211,832	$13,866	$2,290	$4,440
RI	19,649	$13,822	$2,280	$4,420
SC	48,433	$14,301	$2,360	$4,580
SD	19,727	$13,122	$2,170	$4,200
TN	67,410	$13,886	$2,290	$4,440
TX	205,508	$14,233	$2,350	$4,550
UT	35,000	$12,988	$2,140	$4,160
VA	73,696	$13,842	$2,280	$4,430
VT	13,575	$13,671	$2,260	$4,370
WA	47,631	$14,594	$2,410	$4,670
WI	75,905	$13,379	$2,210	$4,280
WV	35,194	$12,579	$2,080	$4,020
WY	3,904	$13,836	$2,280	$4,420
U.S. Average	3,301,841	$13,821	$2,280	$4,420

 

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College Affordability Talking Points

The Problem
Students and their families are scrambling to pay for college:

• Tuition costs are rising far faster than inflation while real wages have been stagnant. The average cost of tuition at a public college has increased 42 percent, but median household income has fallen 2 percent.


• 109th Congress raised interest rates on student loans and cut $12 billion from the Federal Student Aid program.


• The maximum Pell Grant Award is worth less, in real dollars, than it was 30 years ago.


• In July 2006, interest rates increased from a variable interest rate that was set at 5.3% to a fixed rate of 6.8%.


• Each year, the cost of higher education translates into over 400,000 qualified students not going on to four-year colleges.


• The average student debt burden in 2004 was almost 60% higher than the mid-1990’s.

 

The People

• A survey by the American Association of University Professors finds 81% of Americans say that the high cost of tuition is a “very serious problem.”


• A survey by the American Association of University Professors finds 42.8% of Americans surveyed believed “the high cost of college” was the “biggest problem facing higher education.”

 

The Solution

• First, pass H.R.5, the College Relief Act of 2007, which will cut interest rates in half for subsidized Stafford loans over the next five years. The state PIRG’s Higher Education Project reports the College Student Relief Act of 2007 would save the current typical student borrower $2,280 over the lifetime of his or her loan and save the beginning college student $4,420 when fully phased in.


• Next, Congress should pass a comprehensive agenda to increase college access and affordability.
  

  Need-based grant aid should be increased by raising the maximum Pell Grant award to $5100.

  
  

  Student loans must be more affordable by lowering interest rates, by limiting the percentage of income students spend repaying loans, by expanding loan forgiveness programs for critical public service careers and by reinstating the refinancing of existing loans.

  
  

  Waste in the student loan programs can be cut by passing the Student Aid Reward Act to give money to students and parents, not banks.

 

On January 17th, by a vote of 356 yea to 71 nay, the House passed HR 5 – the College Student Relief Act of 2007. This bill, if passed into law, will cut need based student loan interest rates in half – a huge victory for all young Americans.

It should come as no suprise to you that each of the 71 no votes were from Republicans.

While the battle to pass HR 5 in the House has ended in success – this year’s efforts to make college more affordable are far from over.

Get your friends to text COLLEGE to 35328 to urge the Senate and President to cut college loan interest rates and to support the Student Relief Act!