Press Releases

Washington, D.C. – Congressman Donald M. Payne, senior member of the House Education and Labor Committee, voted today to make the single largest investment in helping students and families pay for college in history -- at no cost to taxpayers. The Student Aid and Fiscal Responsibility Act (SAFRA), HR 3221, will expand access to an affordable college education to more American students, transform early education opportunities, and build a world-class community college system. The passage of SAFRA will help build a stronger, more competitive American economy for the future while saving taxpayers money.

Payne said, "This is a crucial step toward rebuilding the American economy.  By making sure young people have the ability to attend college or get career training, the US work force will remain the most highly skilled, cutting-edge and effective in the world."

This bill is a major step forward in President Obama's initiative to make sure America once again leads the world in college graduates by 2020. SAFRA will reform the system of federal student loans to save the taxpayers $87 billion and will direct $10 billion back to the Treasury to reduce entitlement spending. SAFRA will also change the way the student loan system functions by originating new loans through the government's Direct Loan program, while maintaining competition among private lenders and non-profits. This simple change will make college loans more reliable for students and families and ensure that loans operate in the best interests of borrowers. 

"This commonsense reform is long overdue and I'm proud to join President Obama and my Democratic colleagues in standing up for the American taxpayer by eliminating billions in waste, while at the same time dramatically expanding access to essential educational opportunities," Payne said.

With the largest-ever investment in higher education, this bill will also significantly increase government grant and loan assistance for college tuition payments. Pell Grants, already distributed to more than 7 million students, will increase to $6,900 by 2019 from $5,350 today. SAFRA will also keep interest rates low on government-subsidized loans, make substantial investments in early childhood education, expand the Perkins low-cost loan program to every U.S. college, and simplify the process of applying for student financial aid.

"With tuition costs at both public and private colleges on the rise even as families struggle through a difficult economy, I'm thrilled we could come together to expand critical opportunities for higher education in this country," Payne said. "Allowing our students to graduate with a better education and less debt is the best way to insure that American workers remain competitive long into the future."

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