|
Congressman Brian Higgins (NY-27) voted to approve HR 3221, the Student Aid and Fiscal Responsibility Act, a historical piece of legislation aimed at expanding access to an affordable education and developing a more competitive American economy.
“Restarting our economy begins with key investments in our student population that will strengthen our workforce and ease financial burdens for them,” said Congressman Higgins. “This legislation helps to streamline the financial aid process and make pursuing a college education more affordable.”
Under the bill all student loans will originate through the Direct Loan program, which is insulated from market swings and can guarantee students access to low cost loans in any economy.
The Student Aid and Fiscal Responsibility Act will provide for an increase in the maximum annual Pell Grant scholarship to $5,550 in 2010 and $6,900 by 2019. In the 2010-2011 academic year 18,146 college students in Congressman Higgins’ district will be eligible for a Pell Grant award. Over the next ten years this Pell grant increases will invest more than $88.8 million in students in the Congressman’s district and over $2.6 billion in students across New York State.
Some other key provisions in the bill include:
> Making it easier to apply for aid with a shorter, simpler FAFSA form
> Removing any potential for conflicts of interest between lenders and colleges, an issue raised by New York Attorney General Andrew Cuomo
> Providing more access to Perkins loan program by expanding it to every U.S. college campus
> Creating a new competitive grant program for community colleges to improved instruction, work with local employers, improve their student support services. Community colleges in New York are expected to receive $8.9 million a year for the next five years benefiting the 270,000 students enrolled in community colleges across the state.
> Keeping interest rates low for New York state’s 520,244 students that receive subsidized federal loans
> Supplying New York with nearly $135.5 million to finance renovation projects that provide modern, state-of-the-art technology and classrooms in community colleges
> Providing $333.1 million over the next two years to New York school districts for modernization, renovation, and repair projects that will create healthier, safer, and more energy-efficient teaching and learning climates
Demonstrating fiscal responsibility and meeting Pay-As-You-Go principles during tough economic times, this legislation returns $10 billion back to the U.S. Treasury to reduce the federal deficit. Even further, the nonpartisan Congressional Budget Office found that having students and families receive student loans directly from the Department of Education will save taxpayers $87 billion over the next 10 years
The Student Aid and Fiscal Responsibility Act is only the latest in a series of legislation intended to improve the financial obligations of young people. In 2007, Congressman Higgins supported and the 110th Congress passed the College Cost Reduction and Access Act which set aside an additional $20 billion in federal student aid without any new costs to taxpayers—the largest investment in student financial aid since the G.I. Bill in 1944. For more information on the new benefits visit the Department of Education and Federal Student Aid website at http://studentaid.ed.gov/.
New education benefits are also available to veterans through the GI Bill for the 21st Century approved by the House on June 19, 2008. Service members may receive benefits for education pursued on or after August 1, 2009. Benefits are generally effective for up to 15 years following the release of active duty. The benefits are disbursed on a sliding scale based on time served. For details on the new GI Bill or to apply for a certificate of eligibility visit the Department of Veterans Affairs website at www.gibill.va.gov.
This bill will now move to the Senate for their consideration and approval.
|
