WASHINGTON – U.S. Rep. Diana DeGette (D-CO), Vice Chair of the Energy and Commerce Committee, today supported legislation that makes the largest single investment in aid to help students and families pay for college in history.  The Student Aid and Fiscal Responsibility Act, which will expand access to an affordable college education, transform early education opportunities, and build a world-class community college system, passed the House of Representatives on a bipartisan vote of 253 to 171.

“This legislation makes a strong commitment to our students,” said U.S. Rep. DeGette.  “Too often I hear from students who want to attend college, but are deterred by the thousands of dollars in debt they would incur.  As our economy rebuilds, it is in our best interest to make sure students who want to continue their education have the necessary resources.”

This bill is a major step forward in President Obama’s initiative to make sure America once again leads the world in college graduates by 2020. The Student Aid and Fiscal Responsibility Act will reform the system of federal student loans to save taxpayers $87 billion and will direct $10 billion back to the Treasury to reduce entitlement spending.   It increases the maximum Pell Grant from $5,350 in 2009 to $5,550 in 2010 and $6,900 in 2019, and keeps interest rates low on subsidized federal loans.  Additionally, it includes substantial investments in early childhood education, expands the Perkins low-cost loan program to every U.S. college, and simplifies the process of applying for student financial aid.
“Americans deserve a streamlined, cost-effective federal student aid program. This legislation eliminates billions in waste by cutting out the middleman and originating all new federal loans through the more efficient Direct Loan program.  This legislation also meets the Pay-As-You-Go fiscally responsible principles.”