March 26, 2010 (Arlingon, VA) - The National Association for College Admission Counseling (NACAC) applauds Congress for investing in student aid in the Student Aid and Fiscal Responsibility Act (SAFRA), which was included in the Health Care and Education Reconciliation Act of 2010, approved on March 25 and ready for the President’s signature.
The SAFRA ends the Federal Family Education Loan (FFEL) program, a federally-guaranteed student loan program. Beginning July 1, 2010, all new federal student loans will be originated through the Direct Loan (DL) program, which is a more reliable lender for students and more cost-effective for taxpayers. Elimination of the FFEL program and originating all new loans in the DL program will yield a net savings on $61 billion over 10 years that will be invested in aid to postsecondary education.
NACAC commends the following investments:
- $36 billion for the Pell Grant program that will increase the maximum award to $5,550 in 2010 and to $5,975 by 2017. Starting in 2013, the award will be indexed to inflation and increase with costs-of-living. This investment includes $13.5 billion to fund the shortfall due to increased Pell Grant demand;
- $750 million for the college access and completion support for students, part of which will increase funding for the College Access Challenge Grant program;
- $1.5 billion for Income-Based Repayment program that currently caps monthly payments at 15 percent of discretionary income. Starting in 2014, new borrowers can cap their payments at just 10 percent; and
- $2 billion for community colleges to develop and improve educational or career training programs.
As education professionals dedicated to helping all students make the transition to postsecondary education, NACAC members consider improving college access to be the number one educational priority for the association. Research indicates that federal investment in need-based student aid, such as the Pell Grant, is the one of the most effective means to improving college access. In addition to investments in need-based financial aid, support for quality school counseling and college-preparatory curriculum in secondary schools are NACAC’s three policy priorities for improving college access and success.
About NACAC:
NACAC is an Arlington, VA-based education association of more than 11,000 secondary school counselors, independent counselors, college admission and financial aid officers, enrollment managers, and organizations that work with students as they make the transition from high school to postsecondary education. The association, founded in 1937, is committed to maintaining high standards that foster ethical and social responsibility among those involved in the transition process, as outlined in the NACAC Statement of Principles of Good Practice. More information about NACAC is available at www.nacacnet.org.