Collegiate Times

Despite predictions that President Bush would veto legislation intended to finance student loans, the U.S. Education Department said last week that Bush will sign the bill into law.

The bill, dubbed the "College Cost Reduction and Access Act of 2007," will direct $22 billion towards federal aid for students, including increasing the maximum Pell Grant to $5,400 and slashing interest rates on student loans.

"Anything to increase the Pell Grant maximum is welcome," said Larry Zaglanizzny, director for congressional relations at the National Association of Student Financial Aid Administrators. "They've made some changes that will bring more individuals into Pell Grant eligibility, primarily more dependants of middle-income individuals."

The Federal Pell Grant Program is designed to provide grants to low-income undergraduate students to facilitate their access to postsecondary education. The Department of Education uses a standard formula, including a student's Expected Family Contribution, the cost of attendance of the institution, and how long and in what capacity the student will be attending, to determine financial need for each student.

"Pell, when it was started in 1973, was called the basic grant," said Dr. Barry Simmons, director of the Office of University Scholarships and Financial Aid at Virginia Tech. "It is the base of a financial aid package and it goes to our neediest students." Simmons clarified that approximately 13% of Virginia Tech undergraduates receive Pell grants, while 70% of the entire student body receives some type of financial aid.

In his 2008 budget plan, Bush proposed that funding for Pell Grants be increased. Republicans in Congress have said that the finished legislation is very close to what Bush requested. Congressional Democrats, however, insisted that the bill's sponsors, Senator Edward M. Kennedy (D- Mass.) and Representative George Miller (D - Calif.) deserved the bulk of the credit for the legislation.

Several Republicans have stated that they will vote against the bill, arguing that the money put into the interest rate cut would be better added to the Pell Grant increase. Rep. Buck McKeon (R-Calif.) also expressed disappointment with Democrats for leaving out a provision requiring colleges and universities to provide more information to the public about how they spend their money.

"The Democratic proposal sets program participants up for failure," said McKeon in a prepared statement. "[The proposal] imposes impossible deadlines for implementation of complex new programs and policies."

Though the bill is not without controversy, it will become the biggest increase in federal student aid since the GI bill when Bush signs it into law.