Spackenkill, NY – U.S. Rep. John Hall (D-Dover) met with Spackenkill High School juniors and seniors this morning to discuss the ways he is working to make the student loan application process easier and to make college more affordable and accessible. Congressman Hall announced that the House passed yesterday H.R. 3221, The Student Aid and Fiscal Responsibility Act (SAFRA), legislation that will provide the biggest single investment in student loan aid in history. The legislation saves the taxpayers $87 billion by ending unnecessary subsidies to banks that service student loans and reinvests the money to provide more grants to students and to lower interest rates on student loans. $10 billion of the savings will be directed back to the Treasury to help reduce entitlement spending and the rest of the savings will help students and families pay for college and strengthen education programs.

 

"This is a simple, commonsense reform that eliminates billions in waste while putting our country on sounder fiscal footing and also dramatically expanding access to essential educational opportunities," said Congressman Hall.

 

Much of the money saved is invested in higher Pell Grants for college students: with the maximum scholarship increased to $5,550 in 2010 and $6,900 in 2019.  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.

 

"The Student Aid and Fiscal Responsibility Act will expand access to an affordable college education to more American students, transform early education opportunities, and build a world-class community college system," said Congressman Hall. "This is a big step forward 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, cutting-edge and effective in the world."

 

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