Single Largest Investment In College Aid In American History Passes House

Press Release

Single Largest Investment In College Aid In American History Passes House

Washington, D.C., September 17th -- Congressman Jim Moran, Virginia Democrat, voted today to make the single largest investment in aid to help students and families pay for college in U.S. history. The Student Aid and Fiscal Responsibility Act (SAFRA) (H.R. 3221) passed the House on a 253 -- 171 vote. The legislation will expand access to an affordable college education to more Americans, transform early education opportunities, and build a world-class community college system. SAFRA is estimated to save taxpayers $87 billion, $10 billion of which will go toward reducing entitlement spending.

“This bill will empower more Americans to pursue a college degree without accruing the kind of debt current graduates struggle with three, five, ten, even twenty years after graduation,” said Moran. “Expanding educational opportunities today will mean a stronger, more competitive economy in the long run.”

SAFRA will 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 to provide top-notch customer service for student borrowers. This simple change will make college loans more reliable for students and families -- and ensure that loans operate in the best interests of borrowers by reducing many of the potential conflicts of interest that exist in the current loan system.

The bill will also significantly increase government grant and loan assistance for college tuition payments. Pell Grants, already distributed to more than seven 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.

Passage by the House represents a major step forward for the President's 2020 initiative to take America back to the top of the global rankings in terms of college graduates per capita.

“It's a win-win for all involved,” said Rep. Moran. “Taxpayers will save money, higher education opportunities will be expanded, and more young people will go on to pursue careers and become contributing members of society, growing our nation's high-skilled workforce.”

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