Student Aid and Fiscal Responsibility Act passes House 253-171

Washington, DC – Congresswoman Eddie Bernice Johnson today voted for H.R. 3221, the Student Aid and Fiscal Responsibility Act (SAFRA), the largest aid investment in history to make college more affordable for students and their families.  SAFRA reforms and stabilizes the existing system of federal student loans, saving taxpayers $87 billion in the process.  It passed the House by a vote of 253-171.

“The economic crisis of the past year has made it more difficult for students and families to afford college, and the credit crisis exposed serious vulnerabilities in the existing student loan system,” Congresswoman Johnson said.  “This legislation safeguards the federal student loan program and makes it more efficient and cost-effective for the students it was meant to serve.”

Congresswoman Johnson spoke on the House floor in favor of the Himes/McCarthy/Schwartz Amendment to the bill, which clarifies that some funding under the bill can be used for financial literacy activities.  The amendment passed by a vote of 428-2.

“Broad-based financial literacy initiatives help our young people become responsible, productive adults,” Congresswoman Johnson said.  “Financial education is a crucial component of postsecondary education.”

The Student Aid and Fiscal Responsibility Act will simplify the federal student aid application process, keep interest rates affordable on need-based federal student loans, and increase the maximum Pell Grant from $5,350 in 2009 to $5,550 in 2010 and $6,900 in 2019.  It will also stabilize the federal student loan program by originating all new loans through the government’s Direct Loan program.  Private entities will continue to be allowed to compete for contracts to service loans, ensuring that students get the best services available.

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U.S. Representative Eddie Bernice Johnson is the highest-ranking Texan on the House Committee on Transportation & Infrastructure and a senior member of the Science Committee. She represents the 30th Congressional District of Texas, which, includes Downtown Dallas, Fair Park, Oak Lawn, Old East Dallas, Pleasant Grove, & South Oak Cliff; all of Balch Springs, DeSoto, Hutchins, Lancaster & Wilmer and parts of Cedar Hill, Duncanville, Ferris, Glenn Heights and Ovilla.