MUNCIE, Ind. -- A reduction in student loan interest rates signed into law by President Clinton will have little major impact on students, a Ball State University official says.

Clarence Casazza, director of scholarships and financial aid, said the higher education bill signed Oct. 7 reauthorizes continuation of current financial aid programs and leaves basic operation of existing programs unchanged.

"It’s a step in the right direction," Casazza said. "The law didn’t cut out any programs, didn’t spread funding throughout a number of new programs or make the programs more complicated."

Interest rates were lowered on the Stafford Loan program from 8.26 percent to 7.46 percent, a reduction of less than 1 percent. Casazza said a student who graduates with a loan balance of $12,000 would save only about $650 in interest over the standard 10-year repayment period.

"A difference of .8 percent in interest is not going to make a student go to college who wouldn’t anyway," Casazza said.

The bill also authorizes an increase in Pell Grants to $5,800 by 2004. Casazza noted, however, that while the current grant authorization is for $4,500, the actual award is only $3,000.

"If the full funding authorized would be appropriated, a students’ debt burden would be a lot less," he said.

Casazza said many of the bill’s provisions would affect administrative procedures "behind the scenes" and would not be apparent to students.

Implementation of most provisions would not occur until 2000, he said.

(NOTE TO EDITORS: For more information about this story or how to reach the source, contact Anthony Barker at 765-285-1560 or tbarker@wp.bsu.edu.)