The College Cost Reduction Act, which was signed into law earlier this month is designed to make more financial aid available to the poorest students, as well as to lower interest rates for some new borrowers. As a bonus, the bill also creates an opportunity for students to avoid repayment of some loans ¿ if they engage in certain public service jobs.But it also puts the squeeze on lenders that make federally guaranteed loans, which could result in higher interest rates for some students. And the law only begins to address the issue of affordability and the huge debt students and their parents face. Among the bill¿s most important features is an increase in Pell Grants, which are made to lowest income students. These are set to rise from $4,310 in 2007 to $5,400 by 2012 ¿ an additional $11 billion in funding over the next five years. The bill also eliminates a "tuition sensitivity" provision in the Higher Education Act that prevents Pell Grant recipients at low-cost institutions from receiving their full Pell award. The interest rates on new subsidized Stafford Loans made after July 1, 2008 will gradually drop from 6.8% to 3.4% over the next five years. However, this is of no help to current borrowers, those who have unsubsidized Stafford loans, or graduate students.