Political debate may actually be swelling students’ wallets as the House recently passed legislation to help curb mounting college education costs.
A bill entitled the College Opportunity and Affordability Act of 2007 passed 354-58 and will be put up for vote in the Senate. If approved, students will have more accessible financial aid, protection in borrowing both federal and private loans and less expensive textbook prices.
The proposal comes at a time when college costs have been rising faster than inflation. States are able to cut student assistance during tight budget times; the bill, passed last Thursday, would help to keep those aid levels up.
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Fairfield officials, however, said they are not convinced of the bill’s viability.
“This bill still has a long way to go to get approved and is already being criticized by officials in Washington, D.C.,” said Erin Chiaro, director of Financial Aid at Fairfield. “It is very unlikely it will be passed in its current form, and what will probably happen is that there will be many proposals and changes made to this bill, where in a few months time it may not resemble what is currently proposed,” he said.
More than 25 amendments were added to the bill in reforming the current Higher Education Act.
The overall goal of the bill is to dissuade colleges from raising tuition. The Education Department would be required to create a Web site that students and parents could use to compare the cost of attending different schools.
Colleges would be grouped on the site according to how expensive they are and how quickly their tuition is rising. Schools would also have to report the reasons for tuition increases and how they will be addressed.
Financial changes include a $20 billion increase in federal student aid, the largest boost since 1944. The maximum level of the Pell Grant, given to low-income families, will be raised from the current $4,300 per year to $9,000 per year.
Students and parents would also have to fill out one less form associated with the Free Application for Federal Student Aid (FAFSA).
“The current financial aid application is unnecessarily complex and more complicated than an IRS form,” said Rep. Lloyd Doggett, D-Texas, in a press release. “To fill out the current form, students need Accounting 101 before even setting foot in a college classroom.”
Student borrowers would be more informed on available federal options. Students often turn to private loans because they are either ineligible for federal assistance or are unaware of other options. Private lenders would be required to inform borrowers of available federal options.
Colleges would also have to disclose their relationships with lenders. This would prevent banks that issue federally backed loans to give gifts and have profit-sharing agreements with colleges.
A praised amendment in the bill drops textbook prices, which have reached an all-time high at an estimated $900 per student.
In the current system, publishers sell books and supplemental materials, such as CDs or workbooks, together, which drives up prices. Faculty members do not always seek out price information when selecting books for a class, and publishers are not always up-front with information.
“For some time, we have tried to explain to the faculty and publisher representatives that the bundling issue is not always a good idea. It forces the student to buy a support piece that is not necessary and eliminates the opportunity to buy used texts,” said Barbara Farrell, manager of the Fairfield University bookstore.
The bill requires textbook publishers to disclose the price of books when they sell them to school officials. Also included was a proposal for the creation of a pilot program that would offer college textbook rentals.
Congress must still go though a process of appropriating money to fund the bill’s provision. The target date for the bill’s approval is July 1 of this year.
The proposal is strongly opposed by the Bush administration, which said that it will try to eliminate some of the provisions before the bill is enacted. The bill seeks to prevent states from reducing what they spend on student aid. Those in opposition say that states could lose federal money if such cuts are made.
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