Important bill providing more low cost loans to students passes House

DENVER - On Tuesday, State Representative Andy Kerr (D-Lakewood) helped more Coloradans afford college by updating, expanding and streamlining the CollegeInvest loan program. CollegeInvest provides low cost federally-backed loans and administers 529 plans (tax-advantaged savings plans for education costs). CollegeInvest also provides merit and financial need-based scholarships to students of all income levels across the state.

"I think it's critical we do everything we can to provide access to higher education for the people of Colorado," said Rep. Kerr after his bill passed the House on a final, bi-partisan vote of 62 to 2.

The most important change in Kerr's bill would remove a $2 billion cap on bonding for the program that is currently in place. By eliminating the cap on bonding, the program can increase its funding to provide affordable college loans to more students across the state. The bill also allows CollegeInvest to develop loan forgiveness, increase scholarship programs, update the type of investments CollegeInvest makes, and reduce red tape.

The passage of HB 1201 is particularly timely: an expanding credit crisis - compounded by controversy surrounding the student loan industry - has made the need for trustworthy low-cost student loan providers increasingly important.

CollegeInvest was established in 1979 as a division of the Colorado Department of Higher Education. It was designed to improve college affordability by providing low-cost financial services to students.

House Bill 1201 now moves to the Senate for more debate.