Editorial: Easing student debt

Monday, July 23, 2007 | 7:09 a.m.

The Senate has passed a measure that would, among other things, increase federal aid for college students and forgive debt for students entering certain public service fields.

Under the Higher Education Access Act passed on Friday, students who qualify for federal Pell grants would receive up to $5,400 annually by 2011, compared to the maximum of $4,310 awarded now.

Pell grants are based on financial need and awarded to lower-income students, but the legislation would expand the requirements so that more students would be eligible for the grants.

The legislation also would cap annual loan payments using a formula that is based on a percentage of students' incomes, so that students aren't forced to pay back more than they can afford.

In addition, the debt of students entering certain public service fields would be forgiven after those graduates made payments for 10 years. The long list of qualifying jobs includes early childhood teachers, child welfare workers, nurses, teachers in low-income communities, librarians, police officers and firefighters.

Money to pay for the program would be generated by an $18 billion cut in federal subsidies that are paid to banks that issue government-backed student loans.

The Senate measure is similar to one passed by the House earlier this year, except the House legislation also would cut interest rates on loans to low- and middle-income students. Lawmakers now must work out a compromise that can be taken to a full vote. We hope the interest rate reductions are included.

Senate Majority Leader Harry Reid on Friday said that Nevada college graduates, on average, carry a staggering $17,000 in student loan debt. This legislation makes more aid available while easing young adults' post-graduate financial burden. Such measures are necessary so that the next generation of college graduates - and the U.S. economy that they support - can thrive.