Results tagged “SAFRA” from EdLabor Journal

Chairman Miller discussed public education and college affordability at Contra Costa Community College in San Pablo, Calif. on Tuesday.

The committee has held seven hearings on the reauthorization of the Elementary and Secondary Education Act (currently known as No Child Left Behind) during the 111th Congress. Chairman Miller has consistently stated his belief that the key to long-term economic recovery is a strong public education system. Richmond Confidential reported:

“‘In the middle of this economic chaos,’ [Miller] said, ‘this president knows we can’t compete in a world economy unless we modernize some of our basic systems.’”

…

“Creating a new standard educational model should incorporate the way that young people share information, he said.

“‘All of you create a huge amount of content every day, you teach your peers how to use that new phone, that new program,’ he said. ‘How do we call on people to participate in the educational process who are your peers?’”

Miller also spoke about the rising cost of college and how many students struggle to attain a college degree -- he wrote the Student Aid and Fiscal Responsibility Act to make college more affordable by increasing federal financial aid and making federal student loans easier to repay. Richmond Confidential recorded his comments:

“‘About half the people that show up for community college, they don’t show up for the second year,’ Miller said. ‘They don’t get the certificate they’re after, they don’t get the career opportunity, they don’t get the academic degree they were after and they may end up in debt.’

“Miller spoke in detail about recent reforms to the student loan industry. Subsidies worth $60 billion will be diverted over ten years from banks, which manage loans, to students in the form of grants and federal loans.

“The new law, he explained, also rewards those pursuing public service jobs. ‘If you get in the public health and education sectors, after ten years your loans go away,’ he said, ‘because you’re giving something back.’”

More students are taking advantage of the Pell Grant scholarship nationwide; the scholarship has become critical for students and families during these tough economic times.

The maximum Pell Grant was raised to a record $5,550 in 2010 due to the Student Aid and Fiscal Responsibility Act (SAFRA), authored by Chairman Miller and signed by President Obama in March. Not only has Miller worked to increase federal financial aid, he has made college loans more affordable – the College Cost Reduction and Access Act of 2007 has lowered interest rates on need-based student loans from 6.8 percent to the current 4.5 percent.  The rates will drop again to 3.4 percent in July 2011.

Springfield, Ohio’s Springfield News-Sun wrote that the number of undergraduates relying on Pell Grants has increased:

“An increasing number of students locally and nationally have been receiving financial aid through the Federal Pell Grant Program.

“In Clark County, the recipients of the need-based grant increased more than 5,500 students between academic year 2008-2009 and 2009-2010, according to statistics from the U.S. Department of Education. In the same time period, the grant disbursement increased by $26.9 million.”

The Herald Sun of Durham, North Carolina had similar news to report:

“According to recent figures issued by the U.S. House Committee on Education and Labor, the number of Pell Grant recipients in North Carolina's 4th Congressional District rose 35 percent last year. The district, which includes all of Durham and Orange counties and parts of Wake and Chatham, had 27,471 students who qualified for the aid during the 2009-10 academic year, an increase of 7,145 over the year before.”

…

“Adding to the increase is that under a new student-loan bill signed by President Barack Obama in March, the Pell's Grant's eligibility criteria have changed, and that's made it a little easier to qualify than in the past, Ort and Rome both said.

“Equally important is that the Pell Grant is now authorized for summer school, for the first time.”

Tips for Applying for Federal Student Aid

The Associated Press wrote today that the 111th Congress holds a “record of achievement unseen in years.” The report read:

“Not since the explosive years of the civil rights movement and the hard-fought debut of government-supported health care for the elderly and poor have so many big things -- love them or hate them -- been done so quickly.

“Gridlock? It may feel that way. But that's not the story of the 111th Congress -- not the story history will remember.”

The AP specifically referenced many of Chairman Miller’s achievements when listing important legislation Congressional Democrats have passed, including “a giant step toward universal [health care] coverage”, “an economic stimulus package… to avoid a full-blown depression”,  “making college loans more affordable” and “making it easier for women to challenge pay discrimination.”

Chairman Miller pledged in 2008 to keep the Education and Labor Committee focused on rebuilding and strengthening the middle class during the 111th Congress.

Dr. Jill Biden, wife of Vice President Joe Biden, authored an op-ed in the Miami Herald yesterday calling community colleges “America’s gateway to the future.” A community college instructor herself, Dr. Biden chaired yesterday’s White House Summit on Community Colleges. Her sentiments are shared by Chairman Miller, who wrote key community college provisions into the American Recovery and Reinvestment Act and the Student Aid and Fiscal Responsibility Act to improve community college job training programs and give students the academic support they need to succeed. Dr. Biden wrote:

“In order to restore America's economic competitiveness and prosperity, the Obama administration has set a goal of once again having the highest proportion of college graduates in the world by the year 2020 -- 10 short years away. Community colleges are central to this effort, and the president has specifically called on community colleges to help an additional 5 million Americans earn degrees and certificates in that time. Our challenge is to help these institutions meet the pressing education and job training needs of millions of students working to achieve the American dream. Students just like the ones in my classroom, whose lives are changed by the confidence and opportunity they gain from a quality education.”

…

“In the coming months, we will announce the first $500 million of a $2 billion, four-year investment in community colleges authorized by Congress and signed into law on March 30. This federal investment will support new state-of-the-art education, training and skills development programs to help out-of-work Americans re-enter the job market with increased knowledge and more marketable skills. The funds will enable community colleges to work with universities, business, government and unions to develop career pathways leading to more college graduates ready for the workforce as our economy recovers. In addition, through the American Recovery and Reinvestment Act, the Obama administration has invested billions of dollars specifically in community colleges.”

The University of California system has reported that 39% of its undergraduates receive Pell Grants – the highest level of students receiving federal financial aid in UC history. The Los Angeles Times reported:

“An estimated 70,000 UC undergraduates are receiving federal Pell grants, which typically are awarded to students with family incomes below $50,000. According to the report, that is the largest number in UC history and represents 39% of its undergraduates, up from 35% last year.”

Last year, the Democratic Congress raised Pell scholarships to their highest level in history, $5,550 in 2010. The increase in federal financial aid was part of the Student Aid and Fiscal Responsibility Act (SAFRA), legislation drafted by Chairman Miller. SAFRA will help the country reach President Obama’s goal of producing the most college graduates by 2020 by helping make college affordable for American families.

University of California President Mark Yudof shared his news by visiting Grant Union High School in Del Paso Heights, Calif., telling students that a college education is not out of reach. The Sacramento Bee heard reaction from students:

“‘I'm from a low-income family and this makes me want to go to college even more,’ said Grant High junior Alana Gerasimchuk. ‘It makes me confident that I can go to UC Berkeley.’

“Former Grant High student CrystalKay Fairrington said it's important for kids in Del Paso Heights and other communities to know there are opportunities out there. Fairrington, who also spoke at the pep rally, attends UC Berkeley.

‘Students think it's beyond their reach, and it's not,” she said.” 

The Wall Street Journal writes today about the new rules for student loans. 

Some parents and students may also see lower interest rates on new loans. Now that all Parent PLUS loans are under the Direct Loan Program, the fixed rate for new Parent PLUS loans is 7.9%. Some lenders had charged 8.5%.

And the fixed rate has dropped, to 4.5% from 5.6%, for new subsidized Stafford loans for undergraduates. With subsidized loans, the federal government pays the interest on a loan while the student is in school, during the grace period after graduation or if the loan is in deferment, which is when borrowers are temporarily allowed to stop making payments.

The Department of Education also has increased the maximum Federal Pell Grant award to $5,550 for the 2010-2011 academic year, from $5,350 for the 2009-2010 school year.

As Investopedia pointed out, the reforms eliminate the middleman, enlarge Pell Grants, increase funding for minority-serving institutions, lower income-based payments, and offer more forgiveness opportunities.

Learn more about how reforms to federal student loans help students, families and taxpayers.

The USA Today highlighted some of the July 1st changes to the federal student loan program that lowered rates and made repayment easier.

But before you even think about a private loan, make sure you have maxed out on your federal student loans. Federal student loans have fixed interest rates and more flexible repayment terms than private loans. If you have trouble making payments after you graduate, the federal government offers several programs that provide relief (more on this later). Private lenders aren't required to do anything to help troubled borrowers.

All PLUS loans (Parent Loan for Undergraduate Students) are now issued through the Direct Loan program. Like Stafford loans, these loans were previously offered by private lenders, as well as through the Direct Loan program. The rate for Direct PLUS Loans is 7.9% vs. 8.5% for FFEL PLUS Loans. Parents can use PLUS loans to pay for any college costs that aren't covered through Stafford loans and financial aid. Graduate students are also eligible to borrow through the PLUS program.

Rates for subsidized Stafford loans, which are available to borrowers who demonstrate economic need, fell to 4.5% from 5.6%. This new rate will apply only to subsidized Stafford loans issued between July 1, 2010, and June 30, 2011, says Robert Murray, spokesman for USA Funds, a non-profit company that services loans. Rates on subsidized loans issued before July 1 won't change, he says. The rate for unsubsidized Stafford loans, which are available to all students, remains at 6.8%.

Origination fees for Direct Stafford loans dropped to 1% from 1.5% on July 1. Because the cost of the fee is deducted from the proceeds of the loan, the reduction will increase the amount of money available to pay your college costs, Murray says.

Additionally, the maximum Pell Grant increased to $5,500.

But current students aren't the only ones who benefit. There is help for graduates, too.

Other changes that took effect July 1 could provide relief for graduates who aren't making enough money to afford their loan payments.

The income-based repayment program allows federal student loan borrowers to have their loan payments reduced, based on income and family size. For most eligible borrowers, loan payments will be less than 10% of their income. Two updates to the program could lower payments even more for some borrowers:

Married couples will no longer be penalized. Previously, when couples filed a joint tax return, the program assumed that both spouses could use 100% of their combined income to make loan payments. In cases in which both spouses had student loans, the minimum payments were much higher than the minimum for unmarried borrowers with the same debt and income, says Lauren Asher, president of the Institute for College Access and Success. The new formula will take into account married couples' combined income and their combined debt to calculate minimum payments, Asher says.

Eligibility for income-based repayment will be based on the balance when the loan went into repayment or the current loan amount, whichever is greater. This will primarily benefit borrowers who have gone into forbearance or deferment, Asher says. These programs allow borrowers to temporarily suspend payments, but if interest accrues during the period, they end up with a larger loan balance.

Learn more about the July 1, 2010 federal student loan benefits.

Now more than ever, Americans need affordable, quality education opportunities to help make our economy strong and competitive again. The Student Aid and Fiscal Responsibility Act was included in the health care reconciliation bill that was signed into law on March 30, 2010. Reforms in this law will move America toward producing the most college graduates by 2020 by making the single largest investment in federal student aid ever.



Specifically, these provisions will:

• Invest the bill’s savings to make college affordable and help more Americans graduate
• Provide reliable, affordable, high-quality Federal student loans for all families
• Meet Pay-As-You-Go fiscally responsible principles and reduce the deficit

See how SAFRA will benefit students living in each congressional district

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Chairman George Miller is featured today in Politico’s video series called the “The Politics of America’s Youth” with Mike Allen. He discusses ESEA reauthorization, higher education, and the bipartisan spirit and support for education reform.

Watch the three part video here.

On ESEA Reauthorization:

"We now have the opportunity to really take that rigid system and make a trade-in, if you will, of some additional flexibility at the local level for outcomes, for results. The Secretary [of Education] has made that clear, the President has made that clear, and I think we've made that clear in the series of hearings that we have held. We'd really like now to put more emphasis on better teachers, more emphasis on better leadership, more emphasis on the use of those resources and the flexible use of those resources, and really put teaching and learning and leadership back into the classroom, back into the local systems, and then stand back and hold them accountable for those--for those results, and we're getting a lot of encouragement as we've held our hearings."

On Higher Education:

"And what we tried to address ... was to see whether or not we could bring down the cost of college for families with an increase in the Pell Grant, by lowering the interest rates on student loans over the next couple of years, and then make it easier for the students and the families to manage that debt that they're required to take out to get the degree that they desire. And one of the ways we do that is we have--we let them have an income determinant payment system. How much you pay every month depends upon how much you're making. So, if you start a career with a low entry wage, you can still have that career and you can manage your payments.

"If you go into public service or you work for a non-profit, if you want to become a nurse, a doctor, a teacher, a prosecutor, a public defender and you're working for a public agency, in ten years, your loans go away, and you never have to pay more than 10--10 percent of your discretionary income to pay that loan back. All of a sudden, people can envision careers that otherwise they couldn't have, where they may really wanted to be a teacher, to be a health nurse, to be a physician's assistant, but they couldn't see how they could balance the pay and the education. We need those people, and so this is really in the public interest.

"We also--when we moved to the direct loan programs, it required the companies bring jobs back to America because they're now managing federal assets when they manage the repayment of these loans, and that requires people--that it be done here in America."

On Bipartisanship:

"There is--clearly, whether you're a Democrat or a Republican, you have a big interest in children. It's about our children, our neighbor's children, our constituents' children, it's about the country, and that passion is on both sides of the aisle, certainly in our Committee."

Investopedia put together what they deemed as 5 Surprise Changes to the Student Loan Program. (Frequent readers of this blog won't be surprised by the reforms helping students and taxpayers.)

Investopedia highlighted these 5 changes to federal student loans:

1. Elimination of the Middleman
2. Larger Pell Grants
3. Increased Funding for Minority-Serving Institutions
4. Lower Income-Based Payments
5. More Forgiveness Opportunities

They finished with this:

The Bottom Line
While cash-strapped college students (and their parents) will likely welcome anything that helps them manage those hefty tuition payments, many critics say these measures don't go far enough, especially considering several elements don't go into effect for several years. However, when coupled with recent changes to simply the FAFSA (the form students may complete to apply for federal aid) and the expansion of college-related tax credits, the new legislation may at least provide a little bit of a helping hand to families struggling to afford the overwhelming cost of higher education.

Learn more about how reforms to federal student loans help students, families and taxpayers.

Since 2007, the Democratic-led Congress has:

INCREASED THE MAXIMUM PELL GRANT AWARD TO $5,550 THIS YEAR: By 2017, the maximum Pell Grant is expected to be $5,975. The value of the Pell Grant had been shrinking—paying 75% of college costs in 1977, and just 33% last year.

MADE YOUR STUDENT LOAN REPAYMENTS MORE AFFORDABLE: Right now you can cap your student loan payment at 15% of your discretionary income, and any balances you have left after 25 years will be forgiven. For new borrowers starting in 2014, this goes down to 10% of your discretionary income, with balances forgiven after 20 years.

LOWERED STUDENT LOAN INTEREST RATES ON YOUR NEED-BASED LOANS: Subsidized Stafford loan rates have been dropping and will continue to decrease over the next two years, going down to 4.5% in the 2010-2011 school year and reaching 3.4% in the 2011-2012 school year.

INVESTED IN STUDENTS, NOT BANKS: By switching all schools to the more efficient Direct Loan program, the government will save $61 Billion over the next 10 years—money that will now be used to help you, rather than to give subsidies to banks.

MADE IT EASIER TO APPLY FOR FEDERAL STUDENT AID & PLAN FOR TEXTBOOKS: We streamlined the Free Application for Federal Student Aid (FAFSA) process down from 100 questions and created a two-page FAFSA-EZ form—giving families extra time to plan for college expenses. On textbooks, colleges are now required to provide you with advance information on textbook pricing to help you plan. And publishers must provide pricing information on “unbundled” versions of every “bundled” textbook they sell.

INVESTED IN COMMUNITY COLLEGES -$500 MILLION A YEAR FOR NEXT 4 YEARS: All students—including those who are returning to school after being in the workforce—will have access to high-quality, low-cost higher education. More courses will be available, at times that work for you.

INVESTED $3 BILLION IN HISTORICALLY BLACK COLLEGES AND UNIVERSITIES AND MINORITY-SERVING INSTITUTIONS: This can renew, reform, and expand programming to provide students with the support they need to stay in school and graduate.

ENCOURAGED TEACHING THROUGH TUITION ASSISTANCE AND REWARDED PUBLIC SERVICE THROUGH LOAN FORGIVENESS: You can receive up to $4,000 a year in up-front tuition assistance if you commit to teaching in a high-need school or subject area for four years after you graduate. If you work in public service or at a non-profit for 10 years, and make payments on your federal student loans during that time, any balances you have after 10 years will be forgiven.

A poll from Rasmussen Reports released today purports to show that Americans are strongly against the historic student loan reforms signed into law by President Obama this week. However, when reading the questions Rasmussen asked, it is clear that the firm is playing an April Fools’ gag.

What’s up next for Rasmussen? Gauging Americans’ job approval of the Tooth Fairy?

APRIL FOOLS: “49% think new student loan plan is a bad idea, 35% like it.”(Rasmussen headline)

When presented information on what the student loan reforms signed into law actually do, Americans strongly support it. The Student Aid and Fiscal Responsibility Act invests billions of dollars in students and families, at no costs to taxpayers. Not surprisingly, critics are using scare tactics to try to mislead the American public about this effort. They’re desperate to preserve the status quo – a system that for too long has favored banks at the expense of students and taxpayers.

APRIL FOOLS: “Under a newly approved law, students will borrow money directly from the federal government rather than through a private bank.” (Rasmussen poll question #3)

It’s ridiculous to argue this is a government takeover, when the federal student loan programs are already a federal program, established and subsidized by the federal government. The Federal Family Education Loan Program (FFELP) is broken and now depends on taxpayer dollars not just for subsidies that reimburse lenders when borrowers default on loans, but also for the capital to finance their lending activity altogether.

Taxpayers now fund 8.8 of every 10 dollars in federal student lending activity. They absorb all the risk. There is simply no reason to keep pumping taxpayer dollars into a broken system when the federal government can provide the same low-cost federal loans more reliably for students and at a lower cost for taxpayers.

APRIL FOOLS: “The government says it will save billions by cutting private banks out of the student loan process. How likely is it that the government involvement will save billions of dollars?”(Rasmussen poll question #4)

According to the nonpartisan Congressional Budget Office, but cutting out subsidies to big banks and switching to the cheaper Direct Loan program, the student loan reforms save taxpayers $61 billion over the 10 years. In addition to investing in college aid, these provisions will also reduce the deficit by at least $10 billion over 10 years.

This morning Michelle Singletary noted in the Washington Post the many benefits for students in the Health Care and Education Affordability Reconciliation Act of 2010.

She wrote:

The federal Pell Grant program will get a badly needed financial boost. The Obama administration says the new law pumps more than $40 billion into this program, which provides need-based grants to low-income undergraduates and certain graduate students.

Starting in 2013, the award will be scaled to the consumer price index, adding on a cost-of-living increase. That will raise the maximum from $5,550 to $5,975, according to CBO estimates.

Here's what really excites me. There will be additional funds for community colleges, historically black colleges and other institutions that serve minorities.

Community colleges are expected to get $2 billion over four years. Minority and historically black colleges and universities will get $2.55 billion.

It's about time community colleges got some attention and needed funds. Maybe now, these institutions will shed the reputation that they exist for the academically challenged. Maybe now they won't be seen as the "13th grade," as some people say in discouraging students from this road to higher education.

...

At least if you're stuck with the debt, provisions in the health-care law will lower the cap on monthly payments for some.

Beginning in 2014, student-loan payments under the income-based repayment plan will be capped at no more than 10 percent of a borrower's discretionary income -- the amount of a person's adjusted gross income that exceeds 150 percent of the poverty line for the family size. Payments are capped at 15 percent.

If people keep up their payments, any borrowed amount not paid after 20 years will be forgiven (down from the current 25 years). For public service workers -- teachers, nurses and those in military service -- the debt is forgiven after 10 years.

In many respects, it was quite appropriate to fold higher education provisions into the health-care reform legislation. The financial health of a lot of people has been hurt by the amount of debt they use to get an education.

Yesterday was a milestone for students and taxpayers. President Obama signed the Health Care and Education Affordability Reconciliation Act of 2010 into law.

The Denver Post reports:

President Barack Obama signed into law the last piece of his mammoth plan to overhaul health care Tuesday and, with the same pen strokes, achieved a far-reaching change in the way most Americas help pay the cost of a college education.

Both the health care provisions and revamping the loan program for college students were sandwiched into a single piece of legislation — the budget-reconciliation bill approved last week by the House and Senate.

The San Francisco Chronicle summarizes how students and taxpayers benefit from these new student loan reforms.

President Obama signed important and welcome changes to the nation's campus loan program. The reforms should save the country billions and give more students a crack at a college degree.

Why it took so long is a minor scandal. Since the 1970s, federal money was doled out to banks to lend to students. In practice, though, the banks collected a healthy fee and fobbed off the bad loans to the government. It was a no-lose deal for these lenders.

But it endured, largely through fierce lobbying from lenders such as Sallie Mae. This year, the dam broke. The Senate and House voted to put Washington in charge of the loans, a shift estimated to save $68 billion over 10 years. That will allow loan limits to rise slightly, expand Pell Grants to defray tuition bills for needy students and invest $2 billion in community colleges.

But the changes didn't come easily, despite the sustained and gallant efforts of Rep. George Miller, D-Martinez.

Which is what made the signing ceremony all that more enjoyable. The Washington Post reported on the "ebullient mood" of the signing ceremony:

Pelosi vigorously clapped back at the crowd as camera flashes popped. When Obama later singled Pelosi out, calling her "amazing," the crowd jumped to its feet again. (Rep. George Miller (D-Calif.) got a standing ovation, too).

Learn more about the reforms to federal student loans as well as the fixes to the health care reform legislation.

The Economic Policy Institute took a look at the recently-passed Student Aid and Fiscal Responsibility Act in the budget reconciliation and found it would actually produce jobs in local communities.

While lenders used scare tactics about job loss to try to protect their billion dollar subsidies, EPI found that the legislation will result in more help for student and more jobs:

According to the Congressional Budget Office, the legislation will reduce bank subsidies by $61 billion between 2010 and 2019. A large share of these savings will then be used to boost financial aid for low- and middle-income borrowers.

For example, the legislation increases funding for Pell Grants by $36 billion over the next 10 years. Pell Grants are scholarships to help low- and moderate-income students pay their college costs. Sixty-two percent of dependent Pell Grant recipients come from families with incomes below $30,000 per year. Pell Grants are therefore extremely well-targeted to individuals who will rely on them to increase their spending (for textbooks, tuition, and other expenses) rather than to increase their savings.

Similar to food stamps and unemployment insurance, this spending creates demand for goods and services in local communities, and this in turn helps to create jobs. The key reason for persistently high unemployment in the United States is the lack of demand for goods and services; spending that spurs demand thus creates jobs.

The job-creating effects of the education provisions of the reconciliation legislation will likely outweigh any job loss that could result from eliminating the middlemen in the student loan programs. These reforms are clearly a win-win-win for American workers, students, and taxpayers.

(emphasis and link added)

Yesterday, the House approved legislation that makes key improvements to the historic health reform law, and makes the single largest investment in college aid ever, at no additional cost to taxpayers.

The legislation makes health care even more affordable for the middle class, lowers prescription drug costs for seniors by closing the “donut hole” over time, reduces the deficit and strips out special deals that favored one state over another. The bill also makes the most sweeping changes to our federal student loan program in a generation.

This morning, the Speaker of the House enrolled the bill. The package will now go to President Obama’s desk for his signature. Below are some photos of the enrollment ceremony as well as a few of a surprise birthday cake for Speaker Pelosi on her birthday.

Later today, the U.S. House of Representatives will cast a final vote on the budget reconciliation bill that will make necessary reforms to the federal student loan program. CNN polled Americans on how they felt on the Student Aid and Fiscal Responsibility Act.

They found:

Nearly two-thirds of Americans say they favor a proposal to increase the amount of money available for college loans by allowing the government to provide those loans directly to students, according to a new poll.

A CNN/Opinion Research Corporation survey released Wednesday indicates that 64 percent of respondents favor the proposal and 34 percent opposed it.

...

The survey also indicates, to a degree, some rare bipartisan support, with a vast majority of Democrats, a solid majority of Independents, and a slight majority of Republicans favoring the proposal.

Read more about their poll and learn more about the Student Aid and Fiscal Responsibility Act.

Yesterday, students from all over the United States rallied on Capitol Hill in favor of the Student Aid and Fiscal Responsibility Act while lenders spent millions to derail these much needed reforms for students and taxpayers.

The Washington Post reports:

College students swarmed Capitol Hill on Tuesday to plead for more financial aid as private lenders made a last push to preserve their endangered role in making federal student loans.

The dueling messages sought to influence potential Senate action this week on a proposal to expand direct government lending by cutting funding for private firms that make federally guaranteed loans. Tens of billions of dollars in projected savings would flow to grants for needy students.

...

The measure would save an estimated $61 billion over 10 years by cutting out subsidies for private lenders, which the Obama administration describes as needless go-betweens, and by expanding direct government lending. It would provide $36 billion in Pell grants for students from low- and moderate-income families, including $13.5 billion to plug a shortfall this year because rising numbers of students are eligible for aid.

The United States Student Association rallied hundreds of members on Capitol Hill for the bill. They waved signs -- "Students NOT Banks!" and "$ Now!" -- and chanted slogans that underscored the fiscal straits universities face as they raise tuition. "They say, 'Cut back!' " students yelled. "We say, 'Fight back!' "

"I'm an independent student," said Sabrina Ford, 19, of Ypsilanti, Mich., a financial aid recipient in her first year at Eastern Michigan University. "If the Pell grants are cut, I have no idea how I would pay for education. Right now, I rely on myself and the government to assist me."

Learn more about the Student Aid and Fiscal Responsibility Act, read Chairman Miller's condemnation of Sallie Mae's scare tactics and his comments after the House passed the bill on Sunday.

As the Congress prepares to vote on the budget reconciliation bill that contains the Student Aid and Fiscal Responsibility Act this week, Newsweek is reporting that surging numbers of college applicants is putting the Department of Education under strain to fill the need for Pell Grants. The Secretary of Education says that the only way to ensure all students get what they need is to pass SAFRA.

Newsweek says:

Because of the recession and continued high jobless rates, a surge of prospective students are heading to college to gain a competitive advantage in the job market, and an unexpectedly large number of them are applying and qualifying for Pell grant money to help pay for their classes. The U.S. Department of Education says 2.6 million more people have already applied and qualified for Pell grants for fall 2010, compared with academic years before the recession began. Specifically, between fiscal year 2008 and fiscal year 2011, the number of qualified applicants has risen from 6.1 million to 8.7 million.

During a conference call with reporters late Thursday, Education Secretary Arne Duncan stressed that if the direct-student-loan bill fails to pass, there will be no way to span the gap between the money already allocated for Pell grants this fall and the increased demand for financing. The result would be that many qualified applicants would not get the maximum of $5,150 but a whittled-down check averaging $2,150.

The savings from the bill, Duncan said, could help the country “educate our way to a better economy. The downside, if we do nothing, is that as many as 8 million students will see their aid cut by as much as 50 percent. This is a huge, huge opportunity.”

Learn more how the Student Aid and Fiscal Responsibility Act will affect your congressional district.

Now more than ever, Americans need affordable, quality education opportunities to help make our economy strong and competitive again. President Obama has identified an opportunity to make historic investments in our economic future by making college dramatically more affordable – at no cost to taxpayers.The Student Aid and Fiscal Responsibility Act (SAFRA) embraces the president’s challenge. It will help us reach his goal of producing the most college graduates by 2020 by making the single largest investment in higher education ever.

See how SAFRA will benefit students living in each congressional district:

Alabama

• Jo Bonner (AL-1)
• Bobby Bright (AL-2)
• Mike Rogers (AL-3)
• Robert B. Aderholt (AL-4)
• Parker Griffith (AL-5)
• Spencer Bachus (AL-6)
• Artur Davis (AL-7)

Alaska

• Don Young (AK-AL)

American Samoa

• Eni F. H. Faleomavaega (AS-AL)
  

Arizona

• Ann Kirkpatrick (AZ-1)
• Trent Franks (AZ-2)
• John B. Shadegg (AZ-3)
• Ed Pastor (AZ-4)
• Harry E. Mitchell (AZ-5)
• Jeff Flake (AZ-6)
• Raúl M. Grijalva (AZ-7)
• Gabrielle Giffords (AZ-8)

Arkansas

• Marion Berry (AR-1)
• Vic Snyder (AR-2)
• John Boozman (AR-3)
• Mike Ross (AR-4)

California

• Mike Thompson (CA-1)
• Wally Herger (CA-2)
• Daniel E. Lungren (CA-3)
• Tom McClintock (CA-4)
• Doris O. Matsui (CA-5)
• Lynn C. Woolsey (CA-6)
• George Miller (CA-7)
• Nancy Pelosi (CA-8)
• Barbara Lee (CA-9)
• John Garamendi (CA-10)
• Jerry McNerney (CA-11)
• Jackie Speier (CA-12)
• Fortney Pete Stark (CA-13)
• Anna G. Eshoo (CA-14)
• Michael M. Honda (CA-15)
• Zoe Lofgren (CA-16)
• Sam Farr (CA-17)
• Dennis A. Cardoza (CA-18)
• George Radanovich (CA-19)
• Jim Costa (CA-20)
• Devin Nunes (CA-21)
• Kevin McCarthy (CA-22)
• Lois Capps (CA-23)
• Elton Gallegly (CA-24)
• Howard P. "Buck'' McKeon (CA-25)
• David Dreier (CA-26)
• Brad Sherman (CA-27)
• Howard L. Berman (CA-28)
• Adam B. Schiff (CA-29)
• Henry A. Waxman (CA-30)
• Xavier Becerra (CA-31)
• Judy Chu (CA-32)
• Diane E. Watson (CA-33)
• Lucille Roybal-Allard (CA-34)
• Maxine Waters (CA-35)
• Jane Harman (CA-36)
• Laura Richardson (CA-37)
• Grace F. Napolitano (CA-38)
• Linda T. Sánchez (CA-39)
• Edward R. Royce (CA-40)
• Jerry Lewis (CA-41)
• Gary G. Miller (CA-42)
• Joe Baca (CA-43)
• Ken Calvert (CA-44)
• Mary Bono Mack (CA-45)
• Dana Rohrabacher (CA-46)
• Loretta Sanchez (CA-47)
• John Campbell (CA-48)
• Darrell E. Issa (CA-49)
• Brian P. Bilbray (CA-50)
• Bob Filner (CA-51)
• Duncan Hunter (CA-52)
• Susan A. Davis (CA-53)