THE ISSUE:

Congress passes big college aid package

OUR VIEW:

Lawmakers and the administration should be lauded for their investment in education

The College Cost Reduction and Access Act may be the single largest investment in college financial assistance since the 1944 G.I. Bill.

At a time when college costs have grown nearly 40 percent over the past five years, this legislation will bring higher education within reach for more families in South Dakota.

The student loan package was supported by both Sens. Tim Johnson and John Thune in the Senate, which approved the conference report with the House of Representatives by a 79-12 margin.

The House agreed by another huge margin, 292-97, to help pay for the bill by cutting subsidies to banks and firms that make student loans by $20 billion over five years and to apply most of the savings to measures that directly benefit students, such as interest-rate reductions.

Rep. Stephanie Herseth Sandlin said the legislation will help more South Dakota families afford college. It cuts interest rates in half on subsidized student loans over the next four years. It makes student loan payments more manageable for borrowers by guaranteeing they will not have to pay more than 15 percent of the discretionary income in loan repayments, and allowing borrowers in economic hardship to have their loans forgiven after 25 years. It also expands eligibility for Pell Grants and raises them by 25 percent, or up to $5,400 per year by the year 2012.

College students who commit to teaching in public schools in high-poverty communities or high-need subject areas will get upfront tuition assistance under the bill and it provides loan forgiveness for public servants after 10 years of public service and loan repayment for military service members, first responders, law enforcement officers, firefighters, nurses, public defenders, prosecutors, early childhood educators, librarians and others.

It also makes a landmark new investment of $510 million over five years in tribal colleges and other minority-serving institutions to ensure that students will not only enter college, but remain and graduate.

Kudos to Congress for its bi-partisan support of this investment in America's future and to the Bush Administration for supporting it.