Some students can expect to see increased loans and decreased interest rates, effective Oct. 1, after President George Bush signed the College Cost Reduction and Access Act.

The act, the largest increase in student aid since the G.I. Bill, does not require a reduction in college tuition.

The legislation, however, does provide ways to make college more affordable to students, according to Alex Carter, a policy research associate with the Campaign for America’s Future.

“[The College Cost Reduction and Access Act] increases the Pell grant and reduces the interest rate of subsidies and Stafford loans,” Carter said. “Those are the two main aspects that create the access to students.”

Another provision in the act ensures that borrowers do not have to devote more than 15 percent of their income to repay Stafford loans, according to Carter.

If a borrower has made steady payments for 25 straight years, the remaining balance will be forgiven, he said.

“This lowers the cost and allows you to be able to afford a car or an apartment,” Carter said.

The act also offers loan forgiveness, in which borrowers who work in the public sector and are paying back their loans over a 10-year period do not have to pay off the remaining balance after 10 years.

High-performing students who pledge to teach certain subjects in low-income public schools also have a chance at loan forgiveness, according to the Carter.

Carter said the bill is an effort by the Democratic majority in Congress to correct mistakes made by the 109th Congress.

“The Congress before — they severely damaged higher education,” he said. “They raised interest rates on student loans; they cut funding for grant programs; and they created increased subsidies to the private loan industry.”

According to Carter, Congress has a plan for paying for the student benefits.

“The way that the Democratic leadership is going to pay for [the benefits] is they’ve reversed some of the subsidies to the private loan industry in excess of $20 billion and put it in programs like the Pell Grant Program,” Carter said.

Julie Rice Mallette, associate vice provost and director of scholarships and financial aid, agreed there is a benefit for students.

“One of the ways [the act] could help our students is we have a number of students here who are getting money through the federal subsidized Stafford loan program,” she said. “[The act] would authorize a decrease in the interest for those loans.”

But, Mallette did warn of possible drawbacks.

“There is a difference between authorizing an increase and funding an increase,” Mallette said. “As with all programs, it is hard to predict the future, and Congress can’t fully tell at this point whether the amount allocated to fund the Pell Grant Program in ’08-’09 will be sufficient to fund a $4,800 maximum Pell.”

According to Mallette approximately 3,800 students at the University receive a Pell grant, and of those, about a third receive the highest allowed award.

Students who receive $400, the smallest Pell grant awarded, will only see a slight increase in the grant, whereas students who currently receive the maximum Pell grant will receive the full increase of $1,090, according to Mallette.

Increases to the maximum Pell grant are set to take place over a span of five years, Mallette said.

She said if college costs go up as well, the Pell grant increase will not make college more affordable, it will only cover the increase.

Danielle Sanford, a sophomore in middle grades education, said the act will have a positive impact on students.

“It will give more opportunities for students to come to this campus because it is so expensive,” she said. “It will give them a financial break and more venues to choose from.”

Randi Collins, a sophomore in zoology, agreed with Sanford.

“It would encourage more students to take their studies more seriously,” Collins said. “Any time you have help with your fees, it would be positive. College is getting more and more expensive every year.”

Nicole Thomas, a freshman in animal science, said although she has been fortunate enough to get tuition assistance from her parents, the act is good for other students.

“It will be good for people that are trying to pay back loans, and it will help students who are in need,” Thomas said.