(Washington,
D.C.) – Today, U.S. Senator Patty Murray (D-WA) applauded the arrival of major
investments in higher education support for students and families in Washington
state and an end to student loan subsidies for big banks. Senator Murray worked
hard for these changes, which were included in the Health Care and
Education Reconciliation Act signed into law on March, 30, 2010.
“Starting
today, students across Washington state are going to start seeing the benefits
of the new law that puts their education needs above big bank profits,” said Senator
Patty Murray. “I was proud to fight for these changes because I know
how important Pell Grants and student loans are for students who dream of a
college education. Without the help of Pell Grants and student loans, my six
siblings and I would never have been able to go to college.”
As
of today,
all colleges and universities participating in federal student loan programs
will be required to offer all new loans through the Federal Direct Loan
Program. The Direct Loan program is a more reliable lender for students and
more cost-effective for taxpayers. In total, changes to the student loan
program will create $61 billion in savings by eliminating the need for wasteful
government subsidies to commercial lenders.
Additional
benefits of the bill include the investment of $523 million over 10 years to
increase Pell Grants for Washington state students and allow them more direct
access to student loans. In total, the bill increases the maximum Pell Grant
scholarships available to $5,550 in 2010 and $5,975 by 2017.
Washington
state benefits:
- $464
million in additional Pell Grant funding for Washington state over 10
years. - Washington
state minority serving institutions would receive an increase in funds of
nearly $50 million. - This
bill would provide an additional $10 million in funding for Washington state
College Access Challenge Grants, which help states increase the number of
low-income students prepared to enter and succeed in college. - Monthly
student loan payments will be more manageable for low- and middle-income
borrowers. Monthly payments will be capped at 10% of a borrower’s salary,
and would forgive any remaining debt after 20 years.
Washington
state students should got to http://studentaid.ed.gov/
for more information.
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