House Votes to Expand Federal Student Loans
source: http://www.nytimes.com/2009/09/18/education/18educ.html
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The House of Representatives passed legislation Thursday that expands federal aid to college students while ending federal subsidies to private lenders.
By shifting to direct federal lending, the Obama administration said it will save more than $80 billion over 10 years, which will go into higher Pell Grants for low-income students, new investments in community colleges, early-childhood programs and other education efforts.
The vote was 253 to 171. The measure, the Student Aid and Fiscal Responsibility Act, now goes to the Senate, where Democratic leaders expect it to pass.
“This legislation provides students and families with the single largest investment in federal student aid ever,” said Representative George Miller, Democrat of California and chairman of the House Education and Labor Committee, who wrote the bill. “Today the House made a clear choice to stop funneling vital taxpayer dollars through board rooms and start sending them directly to dorm rooms.”
Under the current program, the government pays subsidies to lenders and guarantees the loans. All colleges would be required to convert to the federal Direct Loan program by July 1, 2010.
The student-loan legislation would provide $40 billion to increase the maximum annual Pell Grant scholarship to $5,550 in 2010 and to $6,900 by 2019, from $5,350 now. Starting in 2011, the amount of the scholarship will be linked to the cost of living, rising along with the Consumer Price Index, plus 1 percent.
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Source: The New York Times
Change I can believe in.
By shifting to direct federal lending, the Obama administration said it will save more than $80 billion over 10 years, which will go into higher Pell Grants for low-income students, new investments in community colleges, early-childhood programs and other education efforts.
The vote was 253 to 171. The measure, the Student Aid and Fiscal Responsibility Act, now goes to the Senate, where Democratic leaders expect it to pass.
“This legislation provides students and families with the single largest investment in federal student aid ever,” said Representative George Miller, Democrat of California and chairman of the House Education and Labor Committee, who wrote the bill. “Today the House made a clear choice to stop funneling vital taxpayer dollars through board rooms and start sending them directly to dorm rooms.”
Under the current program, the government pays subsidies to lenders and guarantees the loans. All colleges would be required to convert to the federal Direct Loan program by July 1, 2010.
The student-loan legislation would provide $40 billion to increase the maximum annual Pell Grant scholarship to $5,550 in 2010 and to $6,900 by 2019, from $5,350 now. Starting in 2011, the amount of the scholarship will be linked to the cost of living, rising along with the Consumer Price Index, plus 1 percent.
end of excerpt
Source: The New York Times
Change I can believe in.
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jubal
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We need to go after the text book mafia next. If that ain't a racket that should be subject to RICO statutes.
- 2 years ago
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jubal
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Darevalo
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*does a dance* gotta love school... god damn text books are too fukin expensive.
- 2 years ago
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Darevalo
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ryan8566
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this is a major step forward for Obama. those students who have been told 'you will not get anywhere without a degree' have been watching anxiusly...also about re-paying student loans.
- 2 years ago
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ryan8566
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munzik
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Thats some great news.
Im glad the house has actually done something smart.
Yes Votes: 253-----247 dems-----6 repubs
No Votes: 171-----4 dems-----167 repubs
Didnt Vote:10-----5 dems-----5 repubsGod damn Republicans.
- 2 years ago
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munzik
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Nettle
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Yay!
- 2 years ago
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Nettle
