The U.S. House of Representatives has approved legislation designed to help lower the costs of higher education. St. Louis area Congressman Russ Carnahan (D-MO) says H.R. 2669, the College Cost Reduction Act of 2007, would boost scholarships and reduce loan costs at no new taxpayer expense.
The legislation, which he calls the largest single investment in college aid since the GI Bill in 1944, would raise college financial aid by about $18-Billion throughout the country over the next five years, providing an increase of $340-Million in loan and Pell Grant aid to Missouri students and families over that time period.
The legislation pays for itself by reducing federal subsidies paid to lenders in the college loan industry. Those lenders will also reduce their interest rates from 6.8 percent to 3.4 percent. The bill now heads to the Senate, where Carnahan hopes it will pass by the start of the new academic year.