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Press Release
September 17, 2009
Contact: Aaron Hunter 202-225-2040
Rep. Susan Davis Supports Reform of Student Loan Programs to Boost Investment in Education
Bill includes Davis’s amendment for student loan forgiveness for service members whose education is interrupted due to active duty
Washington, DC - Congresswoman Susan Davis voted for H.R. 3221, the Student Aid and Fiscal Responsibility Act (SAFRA) to invest in our nation’s economic future by improving early education opportunities and making college more affordable. SAFRA reforms the student loan system by originating new loans through the government’s Direct Loan program thus reducing federal subsidies to private lenders. The $87 billion in savings would be invested back into the education system.
“This is a critical step toward rebuilding the American economy,” said Davis, who serves on the House Education and Labor Committee. “It will enable more of our young people to attend college or get career training to ensure that our work force remains the most highly skilled, cutting-edge and effective in the world.”
Included in SAFRA is language added by Davis during committee consideration of the bill. The Davis amendment directs the Secretary of Education to assume the federal student loan obligations that service members incur when they are activated in the middle of an academic term. For example, a service member expects to receive $5,000 in federal student loans for the semester. If activated after completing only 50 percent of the semester, that service member may still be charged $2,500 in student loans, even without receiving academic credit.
“These men and women have enough to think about, without also worrying about whether they will have to pay additional student loans on the courses they have not completed,” said Davis. “This is about fairness – service members who are activated while in school should not be charged for coursework for which they did not receive academic credit.”
The passage of H.R. 3221 is a step forward in President Obama’s initiative to make sure America once again leads the world in college graduates by 2020. 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 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.
SAFRA passed the House of Representatives on a vote of 233-171.
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