When Congress passed bills overhauling federal student aid in mid-July, the rhetoric flew high. House Speaker Nancy Pelosi called them "the single largest increase in college aid since the GI Bill." But the GI Bill radically transformed college from an elite bastion to a middle-class aspiration, while these long-delayed reforms merely regain some lost ground. Certain provisions in these bills could fundamentally change the way society shares the burden of college costs, but upholding the vision of a true meritocracy will require broader reorganization of student loans and even changes in the way colleges are run.

The bills contain $17 billion to $18 billion in new aid. The need-based Pell grant will increase 25 percent over five years; interest rate reductions and loan forgiveness will make loans more affordable. These benefits are paid for by $19 billion in subsidy cuts to the student lending industry. (Differences in the Senate and House versions have yet to be reconciled; a Bush veto threat looks shaky considering the Senate's 78-to-18 margin.)

As generous as they sound, these reforms won't make college as affordable as it was even fifteen years ago. College costs have more than doubled in constant dollars since 1985. Nine-tenths of all high school students recognize the value of a college degree, yet 400,000 forgo enrollment each year because they can't afford it. Only a third of young people will earn a postsecondary degree. In 2004 two-thirds of graduates had an average $20,000 in student loan debt. Private, unsubsidized student loans have been growing at the staggering rate of 27 percent annually.

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