With the claim of saving taxpayers $87 billion, the House of Representatives passed a bill that has been referred by multiple legislators as “the single largest government investment” in making higher education more affordable.
The Student Aid and Fiscal Responsibility Act, which was sponsored by George Miller, D-Calif., passed with a vote of 253-171, with six Republicans supporting the bill and four Democrats voting against it.
“It will ensure students will have the lowest possible interest rates available to them over the next few years,” Miller said in a conference call. “It’s very important that this legislation passes.”
The supporters of the bill say it will save taxpayers $87 billion by switching to the Direct Loan Program, which doles out loans directly from the government rather than subsidizing private lenders.
“It invests $77 billion back into the education of our people while reducing the federal entitlement spending by $10 billion,” Speaker of the House, Rep. Nancy Pelosi, D-Calif., said.
There will also be a $40 billion increase in Pell Grants, meaning in 2010-11, the Pell Grant would be $5,550, up from $5,350 this year.
An additional $2.5 billion will be given to historically black universities and minority-serving universities.
Miller added he was very pleased with the final version and how both Democrats and Republicans came together on the bill.
“The House — on a bipartisan basis — turned back amendments to strike funding on community colleges,” Miller said.
Pelosi called the bill a historical landmark in the federal government’s commitment to the future of education.
“We passed the bipartisan College Cost Reduction and Access Act (in 2007). That was the single largest investment in education since the GI Bill of 1944, until today,” Pelosi said.
Rep. Tom Petri, R-Fond du Lac, said in a statement that after advocating for something like this for 26 years, he’s happy to see such a “major advancement.”
According to the statement, Petri has worked with the direct loan concept since 1983, and has consistently fought to keep the Direct Loan program implemented during the Clinton Administration in 1993 afloat.
“Today is a victory for students and taxpayers,” Petri said in the statement
Pelosi added she believes it “fits comfortably in the budget the president proposed.”