Student Aid and Fiscal Responsibility Act of 2009 - OpenCongress Wiki
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Student Aid and Fiscal Responsibility Act of 2009
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A bill to end government subsidies to student loan companies and increases funding for Pell Grants and other scholarships.
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The Student Aid and Fiscal Responsibility Act (H.R.3321) introduced on July 15, 2009 ends government subsidies to student loan companies and increases funding for Pell Grants and other scholarships. The measure was passed by the House on Sept. 17, 2009 and similar language is expected to be inserted into the Reconciliation Act of 2010 (H.R.4871).[1] |
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Contents |
Details
Passage of this bill will signal the end of the Family Federal Education Loan program, enacted in 1965. FFEL is one of two ways in which the federal government provides loans to students. Under FFEL, the government provides subsides to private student loan companies and guarantees a significant amount of the loans that those companies lend out. Under H.R.3221, the student loan companies would be cut out of the equation and the federal government would instead lend directly to students.[2] The Congressional Budget Office has estimated that this bill could save the government $87 billion over ten years.[3]
The Student Aid and Fiscal Responsibility Act also:
- increases funding for Pell grants by $40 million
- provides funding for public schools and community colleges for renovation and to improve graduation rates
- streamlines the Free Application for Federal Student Aid, or FAFSA, process
- expands the Perkins Loan Program[4]
Consideration
House action
The bill passed in the House by a vote of 253-171 on July 11, 2009.
On Passage
| Dem | Rep | Other | |
| Ayes | 246 | 7 | 0 |
| Nays | 4 | 167 | 0 |
| Abst. | 5 | 5 | 0 |
Senate action
Instead of voting on H.R.3221, the language of that bill will be included in the Reconciliation Act of 2010 (H.R.4871) – a package of amendments to the Senate health care bill. Since the bill is being considered under the budget reconciliation process, 51 votes would be required for passage instead of 60.[5]
Articles and resources
References
- ↑ OpenCongress' info page on the Student Aid and Fiscal Responsibility Act
- ↑ The U.S. department of Education's info page on the FFEL
- ↑ The Congressional Budget Office Director's blog
- ↑ OpenCongress' info page on the Student Aid and Fiscal Responsibility Act
- ↑ OpenCongress' blog post on the http://www.opencongress.org/articles/view/1695-Doing-Health-Care-and-Student-Loan-Reform-Together Student Aid and Fiscal Responsibility Act]
