Student financial aid could face major reforms if a new federal bill is passed that would invest $87 billion in higher education. The bill would increase maximum loan awards and increase funding to the community college system.
The Student Aid and Fiscal Responsibility Act of 2009 was the subject of a news conference held Tuesday by U.S. Secretary of Education Arne Duncan and Democratic lawmakers including U.S. Rep. George Miller, D-Calif., and U.S. Rep. Tim Bishop, D-N.Y.
Miller, the author of the bill, said the proposed act would make college more affordable and increase student retention by reforming the established Federal Student Loan Program. Community colleges and elementary schools would also receive funding.
""If this goes through, we can look every young person in the eye ... [and say], ‘Regardless of how tough the economy is, regardless of what's going on at home, you're going to have a chance to be successful and go to college and pursue your dreams,'"" Duncan said.
According to Bishop, the act would simplify the Federal Application for Student Aid process and be more responsive to individual families.
The Federal Perkins Loan Program, available to students with great financial need, would receive a $6 billion increase in funds. A separate $85 million would go toward historically black colleges and universities. The community college system could see a $12 billion investment.
The act would also increase the maximum annual Pell Grant award to $5,500 in 2010 from the current $4,050 and would adjust it annually.
The bill would focus $2.5 billion on increasing the nation's college graduation rate through a ""College Access and Completion Fund,"" the first of its kind, according to the lawmakers.
""This is the right thing financially, this is the right thing economically, this is the right thing educationally and this is the best investment we can make in our nation's young people and in the long-term health and vitality of our nation's economy,"" Duncan said.
On Wednesday, members of the House of Representatives will begin discussing the bill. Supporters of the bill hope to complete the amendment process by Thursday.
