New bill may provide more student aid

A new Senate bill has put financial aid recipients one step closer to receiving more funds with lower interest rates.

The U.S. Senate passed the Higher Education Act Thursday by a vote of 96-1. It would increase funds in several areas of financial aid, including Pell Grants, Federal Family Education Loans, Direct Loans, Perkins Loans and Supplemental Educational Opportunity Grants over the next five years. The House passed a similar bill in May.

Margie McGonagill, University of Arizona assistant vice president of federal relations, was pleased the bill passed, but said it was important to know that it's "only one step in the process.

"They still need to work out the differences between the bills from the House and Senate," McGonagill said. "It could take three days, a week, or a month. It's hard to say."

Included in the bill is a reduction in student loan interest rates, which would drop by 0.8 percent. A proposal for the reduction of loan fees was defeated earlier, but the UA already received a loan discount from United Student Aid Funds in June for its consistency in making payments in the past.

Students are optimistic about the new legislation.

"I'm encouraged by the fact that the government is focusing on education," senior Michael Everetts said. "It's not easy to pay for college. Whatever help they can offer to ease the cost is fantastic."

But there could be some problems.

The new bill will increase the maximum amount of funds available for the neediest students. However, there is concern that it might restrict funds to other scholars.

"The bill may allow some recipients to get more money, but you lose a certain group of students who may not have as much financial need," McGonagill said.

Sophomore Andy Graden's family income ranked low enough to be considered as needing significant financial assistance. The extra money, he said, is important.

"I'm glad to have the opportunity to come to college," Graden said. "I would be very disappointed if I had to miss out because I couldn't pay for classes."

Some students are encouraged by the news but are anxious for it to become official.

"There's always been a lot of talk about what they're going to do for us as far as education and costs," sophomore Terry Nivens said. "I hope that the bill goes through. I think we've all had enough of talking."