Amy Traub

The Old College Try

DMI heralded Rep. George Miller's Reverse the Raid on Student Aid Act as one of the best public policies of 2006, even as we lamented the fact that the bill didn't pass.

We all know that a college degree is increasingly necessary to earn a middle-class income, yet the cost of higher education has shot up a staggering 35% in the last five years alone. Students begin their working lives mired in college debt while the lenders rake in huge profits. Too bad the bill didn't pass.

Student borrowers take heart! This year George MIller is the Chair of the House Committee on Education and Labor and yesterday a similar bill sailed through the House.

The College Student Relief Act of 2007 will reduce subsidies to companies that make student loans and use the money to cut the interest rates for federally subsidized student loans in half -- from 6.8% to 3.4%.

There's still more to be done on the college affordability front, from increasing Pell Grants for low-income students to trying to rein in runaway costs in the first place, but for 5.5 million student borrowers who will save thousands of dollars over the life of their loans, this is a vital first step.

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Posted at 7:36 AM, Jan 19, 2007 in Education
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