Spring Break
Student Aid Act passes, changes to come to Texas A&M
By: Meagan O'Toole-Pitts
Issue date: 9/18/09 Section: News
The Student Aid and Fiscal Responsibility Act was passed by the House of Representatives Thursday, and will soon go before the Senate for approval.
The bill, which would save the federal government an estimated $87 billion over the next ten years, was approved by a bipartisan vote of 253 to 171, according to a press release from U.S. Representative George Miller.
Under the bill, The Direct Loan program would replace the Federal Family Educational Loan Program, F. F. E. L. P., eliminating the role of private banks in federal student lending and requiring students to borrow directly from the federal government.
If passed by the Senate, changes under the bill would take effect July 2010.
"Today the House made a clear choice to stop funneling vital taxpayer dollars through board rooms and start sending them directly to dorm rooms," Miller said. "This vote was a historic triumph for America's students, families and taxpayers - and will ensure that their interests never again take a backseat to lenders and big banks."
Of the savings, $40 billion would go to increase the maximum Pell Grant from $5,350 in 2009 to $5,550 in 2010 and $6,900 in 2019, and $10 billion would go back to the Treasury to reduce the deficit, according to a press release from Texas Representative Chet Edwards.
"With tuition rates skyrocketing, middle class students and their families are struggling to afford college. This is an important step toward rebuilding the American economy," Edwards said, "and making sure young people have access to an affordable college education by expanding Pell Grant benefits, and investing in our community colleges at no cost to taxpayers."
College students would receive a more affordable education through the Direct Loan Program, according to a press release from Miller, because loans provided are not subject to fluctuations in the market-guaranteeing the same low interest rates, terms and conditions, no matter what happens in the economy,
The bill, which would save the federal government an estimated $87 billion over the next ten years, was approved by a bipartisan vote of 253 to 171, according to a press release from U.S. Representative George Miller.
Under the bill, The Direct Loan program would replace the Federal Family Educational Loan Program, F. F. E. L. P., eliminating the role of private banks in federal student lending and requiring students to borrow directly from the federal government.
If passed by the Senate, changes under the bill would take effect July 2010.
"Today the House made a clear choice to stop funneling vital taxpayer dollars through board rooms and start sending them directly to dorm rooms," Miller said. "This vote was a historic triumph for America's students, families and taxpayers - and will ensure that their interests never again take a backseat to lenders and big banks."
Of the savings, $40 billion would go to increase the maximum Pell Grant from $5,350 in 2009 to $5,550 in 2010 and $6,900 in 2019, and $10 billion would go back to the Treasury to reduce the deficit, according to a press release from Texas Representative Chet Edwards.
"With tuition rates skyrocketing, middle class students and their families are struggling to afford college. This is an important step toward rebuilding the American economy," Edwards said, "and making sure young people have access to an affordable college education by expanding Pell Grant benefits, and investing in our community colleges at no cost to taxpayers."
College students would receive a more affordable education through the Direct Loan Program, according to a press release from Miller, because loans provided are not subject to fluctuations in the market-guaranteeing the same low interest rates, terms and conditions, no matter what happens in the economy,
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