Yesterday, the House Education and Labor Committee passed the Student Aid and Fiscal Responsibility Act (SAFRA) by a bipartisan vote of 30 to 17. The full House of Representatives is expected to vote on the bill next week.
The legislation would make college more affordable for millions of Americans, at no new cost to taxpayers. The Congressional Budget Office estimates the legislation would generate $87 billion in savings over the next 10 years by ending the Federal Family Education Loan Program. The SAFRA would invest those savings directly in students and families by:
- Investing $40 billion to increase the maximum annual Pell Grant award to $5,550 in 2010 and to $6,900 by 2019. Beginning in 2010, the grant will increase at the rate of the Consumer Price Index plus one percentage point;
- Investing $3 billion to grow college access and completion support programs for students;
- Making it easier for families to apply for financial aid by simplifying the FAFSA form; and
- Providing loan forgiveness for members of the military who are called up to duty in the middle of the academic year.
In addition, the SAFRA would direct $10 billion of savings back to the U.S. Treasury toward deficit reduction.
Prior to the Committee markup yesterday, NACAC sent a letter to Committee members supporting the important and historic investment in student assistance.