WASHINGTON, DC - By a vote of 78-18 the U.S. Senate passed a major education bill this morning to increase financial aid to college students. The Higher Education Access Act of 2007 provides nearly $14 billion in additional need-based grant assistance to low-income students, including an additional $10 million in need-based grant aid for Rhode Island students next year and over $86 million in the next 5 years. It also increases the maximum award of Pell Grants from $4,310 now to $5,100 next year and will increase the grants to $5,400 by 2011. That increases the average grant in Rhode Island by $430 in 2008 to $2,870. The bill also provides loan forgiveness to students who continue in public-service professions for 10 years, including teachers, nurses, and librarians.

"I am pleased the Senate passed this important bill. This legislation will help put college within reach for more deserving students," said Reed, a senior member of the Health, Education, Labor, and Pensions (HELP) Committee who strongly supported the higher education bill. "It will provide an immediate financial boost to thousands of deserving students in Rhode Island and will help millions of students and their families pay down their student loans."

The Pell Grant is named after former Rhode Island senator Claiborne Pell.

During the floor debate, Senate Democrats noted that twenty years ago, the maximum Pell Grant covered 55 percent of costs at a public four-year college. But today, it only covers a third and the average student leaves college with more than $19,000 in student loan debt. In Rhode Island, 61 percent of students graduating from four-year institutions in the 2004-5 school year graduated with debt averaging over $20,000 per student.

"Pell Grants are a key source of funding for students who have the talent but not the financial means to go to college," said Reed. "We must ensure that these grants keep up with the ever-increasing cost of college. I am pleased that my colleagues have recognized the importance of increasing funding for this essential program."

Also included in the legislation is a provision from Senator Reed's Financial Aid Form Simplification and Access (FAFSA) Act (S. 939) to make it easier for more students to qualify for student financial aid. Every family must fill out the FAFSA form to get federal financial assistance such as grants, loans, and work-study jobs.

With an estimated 12,000 Rhode Island students graduating high school this year, Reed's provision will simplify the financial aid process for low-income students by raising the Automatic-Zero Expected Family Contribution threshold to $30,000. Reed's provision will ensure that all students from families with incomes of $30,000 or less will receive a maximum Pell Grant. Currently, only families making $20,000 or less automatically qualify for such grants. This provision not only increases the number of low-income students eligible for need-based aid, but also simplifies the financial aid process by providing such students with early information and assurances of financial aid for college.

Reed also authored a provision in the legislation to reduce the penalty faced by students when they work in order to pay for college. The Income Protection Allowance protects students who have to work during college so they can earn more without having it count against their financial aid.

The legislation also includes provisions to stem the increasing numbers of middle-class families falling further and further into debt to finance a college education. It seeks to protect borrowers by capping monthly loan payments at 15 percent of discretionary income.

"Too many students graduating college are facing the daunting prospect of paying back thousands of dollars in student loans, often taking years to pay back," concluded Reed. "We must do what we can to help our young people get their degrees without being over-burdened with paying back their student loans. This bill will go a long way to helping students secure a brighter future."