U.S. Senator Ken Salazar

Member of the Agriculture, Energy and Veterans Affairs Committees

 

2300 15th Street, Suite 450 Denver, CO 80202 | 702 Hart Senate Building, Washington, D.C. 20510

 

 

For Immediate Release

Friday, September 7, 2007

CONTACT:Stephanie Valencia – 202-228-3630

 

 UPDATE: Sen. Salazar Praises Passage of College Cost Reduction Act, bringing over $465 Million in Relief for Colorado Students
 Bill expands federal programs to make college more affordable, now goes to President for signature

WASHINGTON – As the cost of college continues to skyrocket, United States Senator Ken Salazar today supported Senate passage of The College Cost Reduction Act of 2007 which will provide over $465 million in additional grants and loans over the next five years to help Colorado students afford a higher education. This bill will expand the federal grant and loan programs providing much needed relief that will make college more affordable and more accessible for thousands of young people in Colorado. The bill that passed the Senate today will now go to the President for signature.

“In a competitive global economy, a college education is more important than ever,” said Senator Salazar. “Yet the cost of college is quickly outpacing many family incomes and federal aid has failed to keep up. The rising cost of college has put the dream of a college education out of reach for many young people. More and more students that put their education first, end up graduating with unmanageable debt,” added Salazar.

In Colorado alone, the average cost for attending a public college has increased by 38% over the last five years. Over half of Colorado college seniors are graduating with an average debt of over $16,000. In Colorado, on average, 27 percent of a family’s income is needed to pay for one year at a four-year public college and after financial aid. Specifically, the College Cost Reduction Act of 2007 will:

  • Increase need-based grant aid and increase college access for low-income students by increasing the maximum grant for Pell grant-eligible students by $500 next year and to $5,400 by 2012. This means that low-income Colorado students will be eligible for an additional $29,360,000 in need-based grant aid next year and an additional $318,774,000 over the next five years.


  • Cap the federal student loan payments at 15 percent of the borrower’s discretionary income, bringing needed relief to student with excessive loan burdens.


  • Forgive the debt borrowers who continue in public service careers, such as nursing, teaching, or law enforcement for 10 years.

“Federal student aid programs gave me the chance I needed to achieve success. I believe we should provide all Americans with that same opportunity,” added Salazar.

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