This afternoon, the House passed the Student Aid and Fiscal Responsibility Act (HR 3221) by a vote of 253-171. The bill ensures that higher education is more affordable at no additional expense to taxpayers – in fact, it saves money. More students will go to college, they will graduate with less debt, and the federal loan initiatives that they and their families depend upon will be strengthened for decades to come. The legislation will generate almost $100 billion in savings over the next 10 years that will be used to increase Pell Grant scholarships, keep interest rates on federal loans affordable, and safeguard federal student loan access for families.
Speaker Pelosi:
Education and Labor Committee Chairman George Miller (D-CA):
Chairman Miller:
“My colleague on the other side of the aisle said that this legislation is the wrong way and the wrong place to make this investment. He’s got it exactly backwards. This is the exact way to make this investment. To take the savings by cutting the subsidies to the lenders and recycling those on behalf of families and students and our community institutions so that we can expand the educational opportunities in this country. we cannot continue just to wring our hands about our competitive place in the world..we must do something about it.”
Rep. Ruben Hinojosa (D-TX):
Hinojosa:
“The legislation will increase affordability, accessibility and college completion rates particularly for first generation college low-income, minority and middle-class students. It invests $40 billion to increase the maximum annual Pell Grant scholarships to $5,550 by 2010 and 2019, $6,900 and provides low and middle income families with affordable, direct federal student loans and simplifies the application process for financial aid.”
Rep. Rob Andrews (D-NJ):
Andrews:
“The issues before the House tonight are these. Do you agree or disagree that the time has come to make college more affordable for men and women around this country by making Pell Grant scholarships more available, student loans less expensive and more available? I think most people would say, yes, we do agree with that.”
Rep. Judy Chu (D-CA) on the investments the Student Aid and Fiscal Responsibility Act makes to community colleges:
Chu:
“As a Professor for over 20 years, I know firsthand how important community colleges are to helping hard working Americans achieve their dreams. About one out of every two college students attends a community college and they are some of the hardest workers I have ever met. My students came from all walks of life - they were immigrants, single moms and laid-off workers and many of the students were the first in their families to go to college. Community colleges are the backbone of our nation’s workforce.”
Chairman Miller responds to criticism of the bill and Rep. Tim Bishop (D-NY) explains how this legislation reforms student loan practices for the benefit of both the taxpayer and the borrower:
Bishop:
“What we are doing is we are paying private lenders a subsidy so that they will have the privilege of lending federally originated money to their borrowers. We guarantee repayment of that money to the tune of 97% of the amount outstanding and the private lenders reap whatever interest payments are paid by the borrowers. This is a really, really good deal for private lenders. It is a deal that costs the American taxpayer approximately $8 billion to $9 billion a year that we don’t need to spend in that fashion. We can provide, We, the federal government, can provide the loan capital that students need.”
