Chairman George Miller authored a column on college affordability as part of Forbes Magazine’s yearly America’s Best Colleges feature. Increasing access to America’s higher education system is one of the primary goals of the Education and Labor Committee under Chairman Miller.
The Student Aid and Fiscal Responsibility Act, written by Miller, became law on March 30, 2010 as part of the Health Care and Education Reconciliation Act of 2010. The law, which saves taxpayers $61 billion over 10 years by switching to the more efficient Direct Loan program, will help America reach President Obama’s goal of producing the highest proportion of college graduates by 2020. Miller wrote:
The Student Aid and Fiscal Responsibility Act, written by Miller, became law on March 30, 2010 as part of the Health Care and Education Reconciliation Act of 2010. The law, which saves taxpayers $61 billion over 10 years by switching to the more efficient Direct Loan program, will help America reach President Obama’s goal of producing the highest proportion of college graduates by 2020. Miller wrote:
“We’ve taken important steps to ensure the stability of the student loan programs, to make college more affordable and help families and students manage their student loan debt.
“First, we increased the efficiency of the loan program so that we have more to invest in our students, and we increased the reliability of the programs so that students and families are never again left wondering where to turn in a difficult economy.
“Earlier this year, as part of the historic health care legislation, we made the single largest investment in federal student aid ever and transformed the way student loans programs operate.
“With President Obama’s direction we made the common-sense decision to stop wasting taxpayer money on subsidies to big banks and instead use that money to invest directly in students.
“By making the switch to direct lending, we saved $61 million that we gave directly back to the student. We raised the Pell grant scholarship, we made it easier for borrowers to repay their loans, regardless of their income, and we invested in community colleges and historically black colleges and universities. Most significantly, we made all of these investments in students and our economic future at no cost to taxpayers.
“Second, too often recent graduates look beyond careers in public service because they worry they will not be able to afford to pay back their loans. Recognizing this struggle, we made it easier for students to consider careers in public service.
“Under a program passed in 2007 as part of sweeping college affordability legislation, college graduates who enter into public service careers, such as teachers, public defenders and prosecutors, are eligible for complete loan forgiveness after 10 years of qualifying public service and loan payments. At a time when Americans’ interest in public service jobs is surging, this program is especially helpful.
“Third, we instituted a means for students to repay their loans that caps borrowers’ monthly loan payments at just 15% of their discretionary income. After 25 years in the program, borrowers’ debts will be completely forgiven.”
“Take, for example, a recent graduate with $30,000 in federal student loans and a starting salary of $25,000. Under this repayment program, this borrower’s monthly loan payment would be $110--one-third of the $345 monthly payment under a standard plan.
“Starting in 2014 new borrowers who are eligible for this repayment program will be able to cap their monthly loan payments at just 10% of their discretionary income. Borrowers who responsibly make their monthly payments will see their remaining balance forgiven after 20 years of repayment.”
