Congressman Thompson Votes for Student Aid
September 17, 2009
Today Congressman Mike Thompson (D-CA) joined 252 of his colleagues in voting for the bipartisan Student Aid and Fiscal Responsibility Act (SAFRA- H.R. 3221). The bill will expand access to an affordable college education for more American students, while saving taxpayers $87 billion dollars.
“A bill that saves money today while better preparing our workforce for tomorrow just makes sense,” said Congressman Thompson. “More and more students are dropping out of college because they lack money. In these tough economic times, it's more important than ever that we make sure that all students who want to go to college have access to affordable loans. In our district alone, the number of students getting Pell Grants will nearly double as a result of this legislation, and our students will have access to more than $47 million in additional funds.”
SAFRA will change the way the student loan system functions by originating new loans through the government's Direct Loan program, rather than subsidizing private lenders. The bill will redirect this savings back into the student loan program, expanding access to government grant and loan assistance. Pell Grants, already distributed to more than 7 million students, will increase to $6,900 by 2019 from $5,350 today. The bill also keeps interest rates low on government-subsidized loans, makes substantial investments in early childhood education, expands the Perkins low-cost loan program to every U.S. college, and simplifies the process of applying for student financial aid.
The bill now heads to the Senate, where a similar version is being drafted by the Senate Health, Education and Labor Committee. The Senate is expected to act on this legislation before the end of the year.
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“A bill that saves money today while better preparing our workforce for tomorrow just makes sense,” said Congressman Thompson. “More and more students are dropping out of college because they lack money. In these tough economic times, it's more important than ever that we make sure that all students who want to go to college have access to affordable loans. In our district alone, the number of students getting Pell Grants will nearly double as a result of this legislation, and our students will have access to more than $47 million in additional funds.”
SAFRA will change the way the student loan system functions by originating new loans through the government's Direct Loan program, rather than subsidizing private lenders. The bill will redirect this savings back into the student loan program, expanding access to government grant and loan assistance. Pell Grants, already distributed to more than 7 million students, will increase to $6,900 by 2019 from $5,350 today. The bill also keeps interest rates low on government-subsidized loans, makes substantial investments in early childhood education, expands the Perkins low-cost loan program to every U.S. college, and simplifies the process of applying for student financial aid.
The bill now heads to the Senate, where a similar version is being drafted by the Senate Health, Education and Labor Committee. The Senate is expected to act on this legislation before the end of the year.
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