FOR IMMEDIATE RELEASE: September 30, 1998
CONTACT: Bill Black 202/225-2165
CONGRESSMAN PETERSON PLEASED
HIGHER EDUCATION BILL WILL BECOME LAW
WASHINGTON, DC -- Congressman Collin C. Peterson (DFL-7th District) today announced his satisfaction with Congress in passing the 1998 Higher Education Amendments. The uncommonly bipartisan education bill passed the House and Senate and is on its way to the President, who is expected to sign it. The new law will allow Congress to put more money into Pell Grants and lower interest rates on student loans.
“When we look back on what this Congress has accomplished, one of the most significant achievements will be passage of the Higher Education bill,” said Peterson. “We’ve talked about supporting higher education long enough. This is part of the government backing up its promises to do something about rising education costs.”
The new law cuts the current interest rate paid by students on new loans and reimburses the difference to lending banks who make the loans. Students can refinance existing loans at lower interest if they apply before January 31.
Other changes made by the Higher Education bill include an increase in the amount an individual may receive as a Pell grant. The current $4,500 maximum will rise to $5,000 next year and rise by $200 each year thereafter until 2003 under the new law. The amount a student actually receives depends on a Department of Education formula adjusting for income and other circumstances.
The Higher Education Amendments of 1998 makes several other changes in the existing Higher Education Act passed in 1965, generally expanding some targeted education incentives and repealing others.
“Lowering loan rates and giving more in grants are the two main accomplishments of the new law and will affect the majority of people paying for post-secondary enrollment,” said Peterson. “When the President signs the bill, it will be a large step forward in support of students.”
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