Congressman Dan Maffei today to make the single largest investment in aid to help students and families pay for college in history -- and at no cost to taxpayers. The Student Aid and Fiscal Responsibility Act (SAFRA) (H.R. 3221) will expand access to an affordable college education to more American students, transform early education opportunities, and build a world-class community college system. The passage of the SAFRA will help build a stronger, more competitive American economy for the future while saving taxpayers money. Read more about what the bill will do for our area here.
Congressman Maffei said: “This is a crucial step toward rebuilding the American economy, making sure young people have the ability to attend college or get career training, and that our work force remains the most highly skilled and effective in the world. Earlier this year I introduced an amendment to expand opportunities to Job Corps participants and community colleges, and I am pleased it was included in this bill.”
The amendment Maffei introduced adds to the existing requirements of the bill, which requires the Secretary of Education, in consultation with the Secretary of Labor, to work with grant recipients under this Act to promote opportunities for participants in Youthbuild programs to gain experience on projects funded by bill. Read more about the Maffei amendment here.
SAFRA is a major step forward in President Obama’s initiative to make sure America once again leads the world in college graduates by 2020. This bill will reform the system of federal student loans to save the taxpayers $87 billion and will direct $10 billion back to the Treasury to reduce entitlement spending. SAFRA will change the way the student loan system functions by originating new loans through the government’s Direct Loan program, but will maintain 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.
With the largest-ever investment in higher education, 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.
Congressman Maffei continued: “With tuition costs at both public and private colleges on the rise even as families struggle through a difficult economy, I’m thrilled we could come together to expand critical opportunities for higher education in this country. I have said paying for a college education is like having a mortgage without a house, and we can’t expect our graduates to flourish with that kind of burden on their backs as soon as they enter the work force. Allowing our students to graduate with a better education and less debt is the best way to insure that American workers remain competitive long into the future.”
