WASHINGTON – To address the many challenges students face in financing a college education, Congresswoman Rosa. L. DeLauro (Conn.-3) today reintroduced legislation that will help make college more affordable by allowing student borrowers to manage student loan debt.

“The rising cost of higher education is making the promise of a college degree harder to attain for far too many young people,” said DeLauro. “This legislation provides the necessary tools for students to manage their educational debt and help them pay it back as quickly as possible.”

The “College Loan Assistance Act” would allow student borrowers who have already locked in loan rates to take advantage of historic low fixed interest rates to refinance their student loans. Current federal law prevents borrowers from consolidating a second time. DeLauro’s bill would also eliminate loan and origination fees charged to borrowers, adding thousands to the overall debt they have to pay back.

The cost of higher education has increased dramatically over the past few years, making college less affordable for many families. Over the last 10 years, tuition and fees rose 51% at public 4-years ($1,725), 36% at 4-year private non-profits ($5,321) and 26% ($766) at 2-year public institutions. As college tuition climbed, so has undergraduate student-loan debt. A 2003 study by national loan provider Nellie Mae found debt rose 66 percent from 1997 to 2003 – a monetary difference of $11,400 to $18,900.

The rising cost of higher education has fallen disproportionately on the shoulders of lower-income families. At the same time, the tools these families have for affording college have also become less valuable – the Pell Grant has declined from covering 84 percent of the tuition at a four-year public institution in 1975-76 to 39 percent today. The “College Loan Assistance Act” would restore the original purchasing power of the Pell Grant by increasing the authorized level of the maximum Pell Grant to $7,000.