House passes college scholarship bill

WASHINGTON (Reuters) – The U.S. House of Representatives on
Thursday approved legislation that would update the Pell Grant
program for low income college students and take into account
the growing role newer for-profit schools are playing in higher
education.

Although portions of the “College Access and Opportunity
Act” had bipartisan support, the final 221-199 vote was largely
along party lines.

Republicans said the bill would make college more
affordable and accessible particularly by changing aspects of
the Pell grants for low income students. The maximum grant
allowable by law would rise from $5800 to $6000, if Congress
actually appropriates those funds in annual spending bills. In
recent years the biggest grants have been about $4000.

Democrats had wanted to cut student loan interest rates and
enlarge the Pell grants, which had been frozen for several
years. Pell grants do not have to be repaid. They said this
bill would do little to reduce student debt, now about $17,500
for an average student.

This White House backs the legislation. The Senate has not
taken it up.

The growing sector of for-profit or “proprietary” colleges
was anxious for passage because they hoped it would let them
compete on a more level playing field with public and private
nonprofit schools. But under amendments by moderate Delaware
Republican Rep. Mike Castle they would still be limited in
competing for certain federal funds and would still have to
demonstrate that they get at least 10 percent of their money
from sources other than federal student aid funds.

Originally the legislation included significant changes to
the overall student loan program but Congress instead
incorporated that in the recently enacted $39 billion five-year
spending cut law. That bill set student loan interest rates at
6.8 percent even if commercial rates are lower.

Less controversial sections of the House bill encourage
more math, science and foreign language education, as well as
programs to get more young teachers to work in poor
communities. It will require colleges to make more information
about costs to consumers on a Web site.