Students will soon be paying less for college.

The College Cost Reduction and Access Act of 2007 will make college more affordable with no additional cost from taxpayers.

Over the next five years, the Pell Grant will be increased $11.4 billion in funding. As funding is increased, the maximum grant given to students will increase from $4,310 in 2007 to $5,400 in 2012. Eligibility will also be expanded to serve more students with financial need.

The act is the biggest boost in higher education since the GI bill in 1944. The source of the money will come from cutting excess subsidies paid by the federal government to lenders in the student loan industry, according to the

Committee on Education and Labor Web site.

“This bill is a remarkable step forward in our efforts to help every qualified student go to college,” said Rep. George Miller (D-Calif.), chairman of the Education and Labor Committee and author of the legislation, in a press release. “With this bill, we are saying that no one should be denied the opportunity to go to college simply because of the price.”

Interest rates will be cut in half on subsidized student loans over the next five years, equating to an average of $4,400 for the loan’s life. The act also guarantees borrowers will not have to pay more than 15 percent of their discretionary income in loan repayments.

The average interest-rate cut savings per student over the loan’s life at a four-year school is $4,510. A total of 211,882 receive Pell Grants in Illinois.

Two positives that Assistant Vice Provost Brent Gage listed about the act was the increasing amount of gift aid and decreasing cost of borrowing.

“Since the changes are going to be phased in over the next few years, students will not see an immediate dramatic change,” Gage said. “But the end result will be less total out-of-pocket cost while in school and less repayment of loans after graduation.”

Gage said he is excited about the new bill.

“We are excited about the changes, which were long overdue, to help students achieve their education and minimize their debt,” Gage said.