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.
Legislation
HR 3221 (SAFRA) Bill Text
House Education and Labor Committee Report on HR 3221
House Education and Labor Committee Legislation Summary
NACAC Communications
Coalition Letter to Senate
NACAC Letter to House Education and Labor Committee for HR 3221 Markup
NACAC Letter to Full House
SAFRA Coalition Letter
Bill Analysis
Official CBO Cost Score for HR 3221
CBO Letter to Sen. Judd Gregg with Alternative Scoring
Other Resources
U.S. Department of Education's Office of Inspector General Report on Direct Loan Capacity
Obama Administration Support Statement
NACAC Fact Sheet on Direct Loans
Department of Education Direct Loan Web Page
Balancing Acts: How High School Counselors View Risks and Opportunities of Student Loans