Washington, DC—Rep. Lynn Woolsey voted today to make the single largest investment in aid to help students and families pay for college in history -- and at no cost to taxpayers. H.R. 3221, the Student Aid and Fiscal Responsibility Act (SAFRA), will expand access to an affordable college education to more American students, transform early education opportunities, and build a world-class community college system. The passage of the SAFRA will help build a stronger, more competitive American economy for the future while saving taxpayers money.

“The Student Aid and Fiscal Responsibility Act of 2009 invests in the future of our nation, making college a reality for more students by investing in Pell Grants and programs that will ensure improved graduation rates and the renewed investment of our nation's future,” said Woolsey.  “Creating the American Graduation Initiative was one of the most important parts because it will help community colleges find innovative ways to improve the developmental education and job skills training that so many students and workers need. This section builds upon two grant programs that Rep. Jason Altmire, D-Pa., and I worked together to have included in the Higher Education Act Reauthorization last Congress.”

SAFRA will reform the system of federal student loans to save the taxpayers $87 billion and will direct $10 billion back to the Treasury. SAFRA will change the way the student loan system functions by originating new loans through the government’s Direct Loan program, but will maintain competition among private lenders and non-profits to provide top-notch customer service for student borrowers. This simple change will make college loans more reliable for students and families -- and ensure that loans operate in the best interests of borrowers by reducing many of the potential conflicts of interest that exist in the current loan system.

With the largest-ever investment in higher education, this bill will also significantly increase government grant and loan assistance for college tuition payments. Pell Grants, already distributed to more than 7 million students, will increase to $6,900 by 2019 from $5,350 today. SAFRA also keeps interest rates low on government-subsidized loans, makes substantial investments in early childhood education, and simplifies the process of applying for student financial aid.

“In the end, we are investing in our future,” said Woolsey. ”Twenty-five percent of our population are the young people of this nation. One hundred percent of our future is made up of those individuals. With H.R. 3221, we are ensuring that we will have a better future because they will have a better future.”