Pell Grants will be increased and subsidies to student loan lenders eliminated under a federal measure directing more college funds to where they can do the most good — to students.

And that's why the College Cost Reduction and Access Act of 2007 is also a good thing for public higher education, said NYSUT Executive Vice President Alan Lubin.

President Bush on Sept. 27 signed the popular legislation, which Congress approved earlier in the month by a ratio of 4 to 1.

The new law will increase the maximum Pell Grant award to $5,400 by 2012.

"By increasing Pell Grants, the law helps assure that students can complete their college education on time," Lubin said. "That helps the faculty and staff at public colleges and universities strengthen their mission of working with students who didn't think they could afford it."

Designed to make college more affordable for students from poor and middle-class families, the legislation cuts student loan rates from 6.8 percent to 3.4 percent. It also provides loan forgiveness provisions for certain public employees, including those in education and health.