Last week, buried in the headlines below David Petraeus and "Return on Success" (whatever that means), Congressman George Miller and his Democratic colleagues on the House Labor and Education committee won a quiet victory for students like me across this country. Alongside Sen. Kennedy, they steered the College Cost Reduction and Access Act of 2007 through the House and Senate -- securing $18 billion over the next five years for student aid. Rep. Miller has been fighting for this sort of measure for years against stubborn Republican roadblocks, but finally, Congress has put forth a bill with students in mind on the desk of President Bush -- who is expected to sign the bill today.
What does all of this mean? So, say you're in our shoes. You're 18 years old and you're looking at financial options for college. You know that the average college graduate earns nearly $1 million more over a lifetime than a comparable high school graduate. But the average cost of a four-year private college is $22,000 a year and rising (up 6 percent from 2006). For many aspiring undergrads, that's just not an option. So you turn towards public universities -- that bastion of the American Dream where the word "public" should mean equal access to higher education. And then you find out that the cost of a public four-year degree has increased by almost 40 percent over the past few years.
So whether it's a private or public institution, most students who want a mobile career path take this deep, debt-ridden plunge. Since his tenure began, George W. Bush has made this plunge even worse. In 2005, his administration reworked the eligibility requirements for Pell Grants and knocked 90,000 students off the list. Instead of funding federal student aid, he gave more than $20 billion in subsidies to private student loan providers. The truth is -- students now dread, not anticipate, the day they receive their degrees. They know that the second they turn their tassels, they'd be caught in the unfortunate narrative of overwhelming student loans that practically define the American college experience today.
This bill, hailed as the largest increase in student relief since the GI Bill, will break some of these troubling trends and make college costs more bearable. Without raising taxes, the College Cost Reduction Act will cut interest rates in half on subsidized student loans -- saving the average student $4,400. It reclaims $20 billion from the hands of private student loan providers and secures that money for federal student relief. And starting in 2009, students with Stafford Loans won't have to devote 15 percent of their discretionary incomes to the loan and after 25 years income-based repayments will be completely forgiven.
But what's most encouraging about this bill is that it opens a door to college for low-income students. Also, it will change the face of who is traditionally allowed to attend college. Currently, 47 percent of African-American students receive Pell Grant scholarships annually and with the increase in eligibility, more students will be able to receive these loans. Additionally, the bill will provide 170 million in grants to Historically Black Colleges and Universities which enroll 14 percent of all African-American college students. In addition to providing financial aid, the bill also tackles the problem of where the nation's young college students have been kept from so far due to debt -- highly-needed public service jobs. The bill provides upfront tuition assistance to students who commit to teaching in public schools in high-poverty communities and provides loan forgiveness after 10 years for military service members, first responders, nurses and firefighters.
This is the kind of legislative action students have been waiting for. When Republicans controlled the purse for student aid, they rolled back their promise to students and made affording college more of a privilege than a reality for many students and their families. Rather than pushing for more Pell Grants, Republicans in Congress were pushing for 18-year olds to enlist in the military upon the promise of "money for college," and many young people took it -- exposing another sad chapter in what underprivileged young people are willing to do to get themselves into a classroom. With the passage of this bill, money for college won't be a shrinking dream anymore -- it'll reach those who need it most, and that's the right thing to do.
Now in case you didn't believe me about how hard George Miller fights for students, here he is in action: