TexPIRG Higher Education Associate Rich Williams issued a statement on the
student aid bill language released today by the leadership of the U.S.
House of Representatives:
“TexPIRG applauds the House
leadership under Speaker Nancy Pelosi and Education Chairman George
Miller for unveiling the language of the reconciliation package that
will make federal financial aid programs work for students. At a time
when tens of millions of college students must assume crushing debt
loads to fund their education, this legislative proposal will bring
relief to those who might otherwise forgo or drop out of college.
“It
streamlines the federal financial aid system to make investments in
grants for the neediest students who face record student debt levels.
The federal financial aid system is failing to help students of modest
means gain access to college by forcing them to rely too much on loans
to pay for it. This language renews the promise of higher education for
the 8 million students using federal aid to go to college by bolstering
the Pell grant. The investment will not only increase aid that doesn’t
need to be repaid, thus decreasing the need to rely on loans, but it
will also ensure that the grant level increases with inflation each
year. In addition, the proposal eliminates much of the current shortfall
in the Pell program, providing consistency in a time of economic
uncertainty for millions of students relying on Pell aid right now.
“The
student aid bill will also make a critical investment in programs to
help more students make it to graduation. Paying for college is one
obstacle, while completing a degree or certificate program represents a
different challenge. The bill funds programs to incentivize the best
practices in college access and completion across the country to help
ensure that all undergraduates become graduates.
“Finally, the
proposal makes student debt more manageable for borrowers by enhancing
the federal Income Based Repayment program. Borrowers with lower
salaries can enroll in the program to repay their loans based on what
they make rather than what they owe. The proposal raises the income
levels for borrowers to qualify for the program, as well as lowers the
time frame in which the loan is forgiven from 25 years to 20 years.
“To
achieve these investments, the legislation moves all federal student
lending to the Direct Loan program. Direct lending works; the
administrative costs are lower, the design is simpler and it eliminates
subsidies to the private lending and banking industry. Direct lending is
not just better for students, it is better for taxpayers, too.
“This
legislation renews the promise of student aid programs for the tens of
millions of students who rely on grants and loans to achieve a college
education. The House of Representatives already voted once in support of
this legislation in September; we urge another vote in support of
college students and their families to pass this historic legislation.”
