The U.S. House of Representatives recently approved legislation to make the single largest investment in federal student aid in history.
The Student Aid and Fiscal Responsibility Act, if passed by the Senate, will produce almost $90 billion in savings over the next 10 years, according to a press release from the office of Congressman George Miller, chairman of the House of Education and Labor Committee and author of the bill. With this act, Pell Grant scholarships will be boosted, interest rates on federal loans will be affordable and a more stable, reliable and effective financial aid system for families will be intact.
According to the release, the savings generated from this legislation will be divided and benefit students and their families through many outlets, such as nearly $10 billion for community colleges that prepare students for jobs of the future and $4 million for school modernization, renovation and repair projects. Over eight years, $1 million per year will also be provided to help ensure that the next generation of children can enter kindergarten with the skills they need to succeed.
If passed, the bill will strengthen the Federal Perkins Loan program, which provides low-cost federal loans to students, and simplify the Free Application for Federal Student Aid, or FAFSA forms, making it easier for students to apply.
“Students will feel comfortable with knowing that the federal government is lending them money, rather than private lenders,” said Maurice Hinchey-D, Congressman for the 22nd District of New York.
The act was approved in the House of Representatives by a bipartisan vote of 253 to 171, and is now awaiting a vote by the U.S. Senate.
“I supported the bill,” Hinchey said. “It makes lending more affordable for students and it prepares students for college.”
Although Binghamton University has been administering Direct Loans since the system was first introduced, its student body will benefit from this bill, said Dennis Chavez, BU’s director of Financial Aid Services.
“For us at Binghamton, the increase in the Pell Grants will help more than several students here on campus,” he said. “Any time we can have the federal government supporting college and education, doing more for the education system, it’s a big plus.”