President Bush is expected to sign a bill that would increase federal student financial aid by $22 billion over the next five years – making it the largest investment in college financial aid since the GI Bill in 1944.

Fresno State students who receive financial aid – about 55 percent to 67 percent — will directly benefit from the increase in funds, either immediately from the increased Pell Grants, or later from decreased interest rates on student loans, said financial aid director Maria Hernandez.

But even students who don̢۪t rely on government aid are getting excited about the bill.

“I don’t even get financial aid but that would be just awesome for everyone else,â€Â freshman kinesiology major Megan Kallen said.

The U.S. Senate and the House of Representatives passed the four-part College Cost Reduction and Access Act on Sept. 7 by votes of 79-12 and 292-97, respectively. Congress officially signed off on the bill Sept. 18, and the president has until Sept. 29 to sign it into a law.

Part 1 of the act increases the maximum amount of federally funded Pell Grants to $5,400 from the current $4,310.

“An increase to the federal Pell Grant is, in my opinion, long overdue,â€Â Hernandez said. “Grant dollars have not kept pace with increased educational, as well as living, costs.â€Â

This year, Fresno State estimates that a full-time student for one year will face college costs – including tuition and fees, books and supplies, room and board, transportation and personal expenses – totaling between $10,700 and $15,000.

During the last academic school year, more than 8,000 Fresno State students received a federal Pell Grant, Hernandez said.

The financial aid office gave out about $65 million in grants, loans and federal work-study that year, according to their Web site.

These students could see an increase in the amount of their grant over the next five years, and more grants will be available for more students if Bush signs the bill.

Part 2 of the act cuts interest rates on need-based student loans from 6.8 percent to 3.4 percent. Part 3 caps monthly student loan payments to 15 percent of the borrower̢۪s discretionary income.

Manuel Montanez, a freshman math major, said he would benefit two-fold from the passing of this act. He receives about $16,000 a year from Pell Grants and student loans.

“I think it’s really good; I like it,â€Â Montanez said. “Now I don’t think it will be that hard to pay them off, and I can pay them off as soon as I can.â€Â

Graduates who work for 10 years or more as nurses, elementary school teachers, police officers, firefighters, military personnel and other public service professions will not have to pay their student loans back, according to the new legislation.

“Nice!â€Â said Kimberly Knewdsen, a freshman liberal studies major who wants to teach elementary school. “That would be so amazing if I didn’t have to pay back my loan.â€Â

Knewdsen said she gets $3,500 in loans per year from Sallie Mae. She is also glad to hear of the interest rate reduction.

“I think that’s so good,â€Â she said. “It will make it easier to pay off my loan sooner.â€Â

However, the interest rate reductions apply only to need-based loans for undergraduate students, Hernandez said. Graduate students who take out loans or students who don̢۪t qualify for financial aid but rely on loans will see no interest rate reduction from the act, she said.

Additionally, the legislation only covers the next five years.

“After 2012 the interest rate would revert back to 6.8 percent unless additional legislation is passed between now and then,â€Â Hernandez said.

U.S. Education Secretary Margaret Spellings told the New York Times last week that she recommended Bush sign the bill because it “answered the president’s call to significantly increase funding.â€Â

Republicans took nearly $12 billion from federal student aid programs last year, said Rep. George Miller, D-Calif., chairman of the House Education Committee and a sponsor of the bill.

However, critics say the fourth part of the act could compromise the federal loan program. To increase funding, the act has to cut subsidies to lenders such as Sallie Mae, Nelnet (National Education Loan Network) and the Student Loan Corporation by $20.9 billion over the next five years.

Some Republicans in the House argued that the cuts in lender subsidies went too far and expressed disappointment that the Bush administration was in favor of the bill.

But Fresno State students are glad the president is expected to sign the bill.

“If he signs it he would be helping many people’s futures and letting people get to college who don’t normally get the chance,â€Â Knewdsen said.

Montanez agrees.

“If [Bush] wants to do something better for the country, he’ll sign it,â€Â she said. “It’ll benefit everyone, not just a few.â€Â