Released Oct. 10, 2007

AUBURN UNIVERSITY, Ala. -- Congressman Rubén Hinojosa (D-TX), chair of the Subcommittee on Higher Education, applauded the final passage of legislation that not only makes the largest investment in higher education in more than a generation, but also makes significant investments in Hispanic-Serving Institutions (HSIs) and Historically Black Colleges and Universities (HBCUs).

The College Cost Reduction and Access Act, which both the House of Representatives and Senate approved, will boost college financial aid by more than $20 billion over the next five years. The bill pays for itself by reducing federal subsidies paid to lenders in the college loan industry.

In 1944, the GI bill opened college campuses to returning veterans. Rich, poor, black, Hispanic all had a shot at the American Dream of a college education. This bill provides another opportunity to make sure that America becomes smarter, stronger and richer as a result of an egalitarian investment in education.

The bill is comprised of a package of investments to expand higher education opportunities. It guarantees a minimum increase of $1,090 in the maximum Pell grant over the next five years -- reversing the last five years of stagnant funding -- and would benefit more than 6 million low- and moderate-income students nationwide. More than 400,000 of these students reside in Texas.

To reduce the cost of loans for student borrowers, the bill cuts interest rates in half from 6.8 percent to 3.4 percent over four years.

The bill also contains a landmark provision that commits $200 million in grants over the next two years to HSIs, which enroll almost half of all Hispanic college students. Overall, the bill increases funding by $510 million over two years for minority-serving intuitions.

"I am particularly proud of our work to strengthen the institutions that are the gateways of access to higher education for minority students," said Hinojosa. "Close to half of our public school children are racial or ethnic minorities - one in five is Hispanic. It is clear that minority serving institutions will only grow in importance, and this initiative will ensure that our nation has enough college graduates to fuel our knowledge-based economy."

The College Cost Reduction and Access Act also includes a number of other provisions that will ease the financial burden imposed on American families by the cost of college, including the following:

• Tuition assistance for excellent undergraduate students who agree to teach in the nation's public schools; • Loan forgiveness after 10 years of public service and loan repayment for college • graduates that go into vital public service jobs; and • Strategies to help colleges contain costs and make online information on college costs for students and parents more user friendly.

"This is a once-in-a-generation opportunity," concluded Hinojosa. "This bill will open the doors of higher education to a new generation of students and ensure America's future competitiveness and prosperity."

Source: -30-

http://www.aces.edu/department/extcomm/npa/newsline/archives/003355.php

Contacts: Bernice Wilson, (256) 372-4969

Donna Reynolds, (334) 844-5686