Overhauling college aid

House bill would overhaul student loan system for the first time since the 1960s.

A higher education is one of the key building blocks in achieving income equality and giving people the skills they need to make a better life for themselves. Thankfully, President Obama and Democrats in Congress are making good on a promise to make higher education more affordable for thousands of Americans.

Many prospective students are hard-pressed to come up with the money to pay for college. As state legislatures across the nation have cut funding for higher education, colleges and universities have been forced to raise tuition to make up the difference.

The average college student is more than $20,000 in debt at graduation. That sharp increase has occurred even as the median household income has declined.

But the House last week approved the biggest overhaul of college aid programs since their creation in the 1960s. The vote was 253-171 in favor of a bill that fulfills nearly all of Obama's campaign promises for higher education. Notably, the bill ends government subsidies for private lenders, putting the government directly in charge of lending money to students.

That, in essence, eliminates the unnecessary middle man in the process. The Congressional Budget Office estimates that ending loan subsidies and turning control over to the government would save taxpayers $87 billion.

Lawmakers would use that money to help make college more affordable, increasing the maximum Pell Grant by $1,400 to $6,900 over the next decade. Pell Grants, one of the most reliable forms of aid for needy students, actually have fallen in recent years.

Under the measure, Pell Grants would rise slightly more than inflation over the next decade, increasing on average by about 2.6 percent yearly. However, the grants still would depend on annual spending bills and could rise less than promised.

These measures are not a magic bullet that would make college affordable for all students. And, of course, they still must win approval in the Senate, where they are expected to face more opposition.

But together, the changes could reduce significantly the average student's post-college debt. That, in turn, makes it easier for students to get a start in a new career, finance a car or home, support a family or get through a period of unemployment without slipping into poverty.

Education is the most reliable ticket to financial security for any American family. But that is a false promise if higher education is out of reach for middle-class families.

The changes approved in the House represent a step closer to that dream for many prospective students.

There is no better investment in the nation's future.