Our Opinion: The College Cost Reduction Act helps make the cost of higher education more affordable.
The College Cost Reduction Act, signed by former President George W. Bush in 2007, benefits students and does exactly what the title says.
The act, which will last through the 2012-2013 year, will cut the student loan rate to 5.44 percent July 1, down from 6.8 percent in 2006.
The overall goal is to decrease the interest rate of student loans to 3.4 percent, which will take place July 12, 2013, according to the National Association of Student Financial Aid and Administrators.
This is beneficial because it will make college more affordable to students who need loans to enroll in institutions of higher learning.
Other benefits include that more people will be eligible for financial aid.
This will come at no cost to taxpayers by cutting from lenders, such as reducing lender insurance. It will also increase the Pell Grant maximum by $1,000 for 2009-10.
According to finaid.org, 65.6 percent of students at a four-year public University have taken out student loans to pay for college and have an average cumulative debt of more than $17,000 by the time they graduate.
Students need as much help as they can get, and legislation like this helps needy college students earn degrees, and gives them the extra boost they need to pursue higher education. This can also help make college more affordable for people who wish to stay in school until the job market heals.
The University not only cut classes but tuition and fees continue to rise, so it is good to see the government doing something to help students without raising taxes or creating more federal debt.
But the government must be careful and make sure it balances the budget. It must make sure to meet both ends decrease federal spending and decrease student loan rates.
This type of legislation shows the government is concerned about students, and it should always make efforts to make college more affordable. It is good to see the leaders taking a stand for college students and thinking proactively.
The government should continue to keep students in mind because they need as much financial help as possible.
