Campus Progress applauds Congress for passage and subsequent signing of the College Cost Reduction and Access Act.  Campus Progress and other proponents of the bill had to overcome vehement opposition by student loan companies and veto threats by the Administration to succeed.

Not only does the new College Cost Reduction and Access Act raise the maximum award by at least $1,090 over the next five years, but the bill also makes student loans easier to pay back by cutting interest rates in half for subsidized Stafford loans, and protects borrowers by tying monthly payments to income. Finally, it encourages public service by expanding loan forgiveness programs for firefighters, teachers, and others in valuable but low-paying careers.

All of these important measures will be paid for by making the financial aid system more efficient, rather than from taxpayers. Campus Progress thanks Members of Congress from both parties who worked hard to make college more affordable for millions of young people. We thank the Congress for having the courage to cut expensive and wasteful subsidies to politically powerful loan companies like Sallie Mae and Nelnet.

Through our Debt Hits Hard campaign, Campus Progress looks forward to working with Congress, students, coalition partners in the Campaign for College Affordability, and state and university officials to continue to work towards access to education, student debt relief, and a financial aid system that works for students, not banks. A key priority now is addressing private loans – making sure that students obtain these more expensive loans only when federally guaranteed loans are exhausted, and that they can borrow on fair terms.

We encourage people who want to continue our momentum on these issues to enter our College Affordability Essay Contest now.