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Educational Rights and Government Response
Recent developments

Education as a right not a privilege
The College Access and Opportunity Act, lowers college costs. It makes it easier for students from low or middle income families to attend. Passed in 2005, the act strengthens the federal Pell Grant program. It also strengthens minority-serving institutions.

The maximum Pell Grant award to students, given on the basis of need, can now be up to $6,000 through 2013-2014. Pell Grants may not be available to those who were jailed for a sexual offense.

The Pell Grant also funds a limited number of non-credit, English language and other remedial courses, usually for no more than one academic year.

More change is needed
The Act didn’t fix the Free Application for Federal Student Aid (FAFSA). It’s still really complicated to fill out, and you need a FAFSA to get a Pell Grant.

Eligible candidates get intimidated by the FAFSA. An estimated 1.5 million qualified students did not apply for aid in 2004.
Source: the United States Student Association http://www.usstudents.org/p.asp?WebPage_ID=16
(According to the country’s oldest student association,)

The U.S. Student Association wants the government to increase student Pell grants and cut interest rates on government sponsored loans, now 6.8 percent. They also seek friendlier repayment options. This includes lower required payments for recent graduates who often have somewhat limited starting salaries. As of now, student-loan debt is often comparable to a fixed-rate mortgage: payments stay the same from the first month to the last.

More than 60 percent of four-year college students have to take out loans. As of 2004, loans to students at public colleges were up from $8,000 in 1993 to $17, 250 in 2004. That’s a 65 percent increase after counting inflation. (National Postsecondary Student Aid Study 1993 and 2004)
Source: http://nces.ed.gov/surveys/npsas/

If you include private institutions, 73.9 percent of graduating seniors had education debt in 2003-2004. Ten percent had student education debt of $40,000 or more.

As I mentioned, college costs are rising faster than inflation. A baby born today will likely pay more than three times today’s already high college costs.
Source: http://www.finaid.org/savings/tuition-inflation.phtml.

In 2006, the college inflation rate was 5.9 percent, almost 3 percent more than inflation. The average inflation rate for college costs is estimated to be 7 or 8 percent a year for the next ten years.
Source: The College Board

Hope for the future
The College Cost Reduction Act of 2007 was. It’s need based to benefit low and middle income families. Passed June 15, 2007, it’s the single largest investment since the GI bill for returning veterans after World War II. The new bill saves borrowers money by lowering lenders’ fees without requiring any higher taxes to pay for this benefit.

The student loan interest rate will steadily decrease from 6.12 percent in 2007 to
3.4 percent in 2011. By then, the typical borrower with $13,800 of debt will pay $4,400 less interest. In total, the act will boost college financial aid over the next five years by a total of nearly $20 billion.

The act also gives somewhat larger Pell grants, up to $100 more in 2008-2009 and up to $500 more in 2012-2013.

The act also encourages and rewards public service for those who become firefighters, nurses, first responders, law enforcement officers, public defenders, prosecutors, early childhood educators, librarians and others.

Additionally, those who work in law enforcements including police and public defenders receive a $5,000 loan forgiveness over the next 5 years. The forgiveness is received after five years of consecutive employment in public service without defaulting on their loan. After 10 years of employment, public sector employers will receive complete loan forgiveness.
Source: http://edlabor.house.gov/publications/061207WhoBenefitsOnePager.pdf

Increasing benefits
Over the next five years, student reform benefits will increase. The bill also cuts the maximum student loan interest rate from 6.8 percent to 3.4 percent. It also reduces insurance on unpaid loans from 97 percent to 95 percent on loans made on or after October 1, 2007.

In summary
College is an investment of both money and time. If you know more about how the system works and prepare in advance, you can greatly reduce your costs and increase your benefits from a college education.

A college degree opens the door to better jobs. It also teaches self confidence, discipline, and perseverance, in addition to the specific subjects you study.

by Tara O'Donnell, Hearts & Minds volunteer
Website © Copyright: 1997 - 2007 by Hearts and Minds Network at http://www.heartsandminds.org/self/collegegov.htm - online June 17, 2007, latest changes June 17, 2007