President George W. Bush signed into law on Sept. 27 legislation that has been called the largest investment in college aid since the 1944 G.I. bill which allowed over 7 million veterans access to higher education and job training.

The law, known as the College Cost Reduction and Access Act (CCRAA), increases the federal financial aid pool by nearly $20 billion over the next five years. It will more fully fund federal Pell grants and cut interest rates on federally-subsidized student loans.

Bush had initially threatened to veto the bill, but it gained enough bipartisan support to protect it from veto. The House of Representatives approved the law 292 to 97; the Senate vote was 79 to 12.

“For years, college costs have been growing rapidly,” said U.S. Rep. George Miller (D-Calif.) while introducing the bill to the House on June 12. “With this bill, we are saying that no one should be denied the opportunity to go to college simply because of the price.”

For more than 5 million students nationwide who qualify, it means an increase in the maximum Pell grants awards given from $4,050 in 2007 to $5,200 by 2013. At the same time, the law will incrementally reduce interest rates on need-based federal student loans, such as Stafford loans, from 6.8 percent to 3.4 percent. According to the House Education and Labor Committee, about 6.8 million students take out need-based loans each year.

“Thanks to this legislation, students across this country will take on less college loan debt while in school,” said Speaker of the House Nancy Pelosi (D-Calif.) in a statement released Sept. 27. “And all graduates will pay smaller student loan bills when they enter the workforce.”

One critic of the bill—Rep. Howard P. McKeon (R-Calif.)—argues that it doesn’t allocate enough for Pell grants and that the law “jeopardizes the stability of the Federal Family Education Loan Program by imposing excessive cuts.”

“What was once a campaign promise,” McKeon said in a Sept. 7 statement, “has become a trap that will ensnare either students or taxpayers, and possibly both.”

Rep. McKeon said the law only temporarily reduces interest rates and that it does nothing to actually lower the cost of college.

In 2007, California has more Pell grant recipients—upwards of 570,000—than any other state and stands to receive $3 billion in total aid increase. The cut in interest rates, once fully phased in, will save Californian graduates of 4-year institutions an average of $4,830 over the life of a typical consolidation loan, supporters say.

Close to 7,500 SF State students receive Pell grants, according to the school’s Financial Aid Director Barbara Hubler.

The law also institutes a loan-forgiveness policy for students who choose to work in public service jobs, like firefighting or nursing, for more than 10 years. Additionally, it provides upfront tuition assistance to qualified undergraduates who commit to teaching in “high-need” public schools after graduation.

“SF State prepares many Bay Area teachers,” said Hubler. “Additional grant assistance will hopefully reduce how much future teachers have to borrow.”

For students like Jenna Bianchi, an SF State graduate student working towards her teaching credential, anything helps. For her certificate, Bianchi teaches 9 hours each week at Cesar Chavez Elementary School on top of her regular job at Starbuck’s and other classes. She has $11,000 in student loans.

“It’s hard to provide living expenses when you’re required to work without getting paid,” said Bianchi, 23. “It’s not just money we need, it’s support.”

The House Committee on Education and Labor launched a Web site to explain the effects of the CCRAA. Students can go to edworkforce.house.gov/college, enter the year they started school, the number of years they’ll be in school, their amount of subsidized loans, and the number of years to repay loans and receive an estimate on how much they will save because of the new law.