Congressman Cuellar Votes For Single Largest Investment In College Aid History

Press Release

Congressman Cuellar Votes For Single Largest Investment In College Aid History

Congressman Henry Cuellar (TX-28) today voted for the single largest investment in federal college aid, helping more students and families pay for college. The Student Aid and Fiscal Responsibility Act, H.R. 3221, reforms the federal student loan system, saving taxpayers $87 billion over the next ten years putting $77 billion of savings back into education.

"At a time when American families need it most, we've taken an unprecedented step towards helping more students pay for college," said Congressman Cuellar. "By enhancing the system we already have in place, we can save taxpayer dollars and reinvest that money back into education. There's no better place for these dollars to go."

Beginning July 1, 2010, new federal student loans will originate through the federal Direct Loan program which will reduce subsidies currently paid to private lenders who administer federally funded loans. The savings will reinvest $40 billion into increasing Pell Grant scholarships from $5,550 in 2010 to $6,900 by 2019.

Specifically, the 28th Congressional District will benefit by $152.5 million in Pell Grant scholarship funding over the next ten years and over 29,000 of the district's students will be eligible for Pell Grants next year.

The plan would also lower interest rates on federal need-based and subsidized loans, making interest rates variable beginning in 2012, and simplify the FAFSA application process by allowing students and families to use information from their tax returns to apply. In 2008, Texas students borrowed 470,527 federally subsidized loans.

In addition, the bill invests $2.55 billion towards minority-serving colleges and universities.

"This bill will make a big difference in how students in our communities can finance their college education, and it includes an amendment I authored to expand outreach efforts to educate students and their families about the opportunities available," said Cuellar. "We often have students who are the first of their family to go to college. My amendment not only ensures that they know what options they have, but also how to make loan payments in the long run."

Texas has one of the highest student loan default rates in the country, and Cuellar cites a lack of outreach efforts as the primary cause. He authored an amendment which expands the Department of Education's outreach efforts to adequately inform all students, including minority, bilingual and disadvantaged students, on how to apply for assistance and make payments on federal student aid.

In addition, the bill includes over $500 million for Texas schools as part of the 21st Century Green High-Performing Public School Facilities Act which passed the U.S. House this May. Incorporated into today's bill, the 21st Century School Facilities act makes critical investments to modernize, upgrade and repair school facilities nationwide.

Research shows that enhancements to teaching facilities yields improved student achievement and better teacher recruitment and retention. Beginning in 2010, this funding can be used towards modernization renovations which make schools safer, healthier and more energy efficient.

As part of this modernization act, Cuellar also included a provision which sets aside approximately $320 million for areas recovering from natural disasters or severe economic distress. As Chairman of the House Homeland Security Emergency Communications Preparedness and Response Subcommittee, Cuellar believes it's crucial for a region to rebuild their schools as part of the recovery process from a natural disaster.

"In many ways, our schools are the cornerstone to creating stability in the wake of a natural disaster and in our everyday lives," said Cuellar. "It can't be overstated; the net benefit of this bill is immeasurable."

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