Pallone Supports Legislation That Will Make College More Affordable for N.J. Students

Washington, D.C. --- U.S. Rep. Frank Pallone, Jr. (D-NJ) today supported the College Cost Reduction Act, which includes the single largest increase in college aid since the G.I. bill was passed in 1944 and at no new cost to the American taxpayer.

"The skyrocketing cost of a college education is weighing heavily on the pocketbooks of many New Jersey families. Under the Bush Administration, prices at public colleges have increased by 40 percent after inflation while Pell Grants have remained stagnant.

"This has led to a shift in the way students and families pay their tuition bills. The average financing package used to consist of 60 percent grants and 40 percent loans. Now, it is reversed. Today, students pay for college with an average of 40 percent grants and 60 percent loans, which leaves them with massive debt to pay off as they start their working lives.

"Today, the Democratic House changed that by passing a bill that provides the single largest increase in college aid since the G-I bill. This legislation will increase the maximum Pell Grant scholarship by at least $500 over the next five years, and expand its eligibility to help more families in financial need.

"Overall, the bill provides about $18 billion to college students over the next five years. The bill expands Pell Grant eligibility so more low-income students have access to federal grants, and provides tuition assistance to students who commit to teaching in high-need public schools. The bill also provides loan forgiveness to students who become first responders, law enforcement officers, nurses and early childhood educators. These professionals give back so much to their communities, why shouldn't they receive a little assistance with their college bills?

"And we do all of this with no new cost to taxpayers. How? By cutting excess subsidies paid by the federal government to lenders in the student loan industry. The College Cost Reduction Act makes the largest investment in college financial aid since the G.I. bill - helping students and families better afford college tuition bills, rather than increasing the profits of banks and subsidizing lenders."