| A bill now lingering in the U.S. Senate would eliminate | | | | helping students stay in school by providing funding |
| the Federal Family Education Loan Program (FFEL), | | | | for upper classmen. The bill would also extend tuition |
| creating instead a method of obtaining students loans | | | | tax credits, increase funding for certain colleges, and |
| that proponents of the bill say would make college | | | | make is easier to apply for student aid. |
| more affordable to more college-bound students. | | | | In addition, the bill would change the loan repayment |
| The bill, called the Student Aid and Fiscal | | | | cap at 10 percent of income rather than the current |
| Responsibility Act (SAFRA), passed the House of | | | | 15 percent and it would forgive loans of more than |
| Representatives last year, but has been lingering in | | | | 10 years for graduates in public service, an initiative |
| the Senate for months. One of the main points of | | | | that is supposed to encourage people to go into |
| the bill is to increase Pell Grant awards from $5,350 in | | | | teaching. |
| 2009 to $6,900 in 2019. | | | | Not unexpectedly, the banks are opposed to the bill |
| The bill would also create a Direct Loan system run | | | | and have launched a campaign to prevent its |
| by the federal government, cutting out private | | | | passage. On the other hand, student groups all over |
| lenders who are now part of the loan program. | | | | the country are rallying to support the bill, touted as |
| Those who support SAFRA say this would save | | | | one of the most important pieces of education |
| enough money to increase financial aid. The savings | | | | legislation created in decades. |
| are projected to be high enough to allow for huge | | | | Chances are the bill will stand front in center once the |
| increases in financial aid without costing the | | | | House and Senate quit their haggling over the highly |
| taxpayers additional money. The Congressional | | | | contentious health care debate. The debate on the |
| Budget Office estimates that eliminating FFELP would | | | | educational bill will likely be nearly as contentious, with |
| save more than $80 billion in 10 years. | | | | dozens of lobbyists on both sides bombarding the |
| However, opponents say the act is simply a | | | | halls of the Senate. |
| government takeover of a program that is working | | | | Though it does have some bi-partisan support, those |
| well for students and also creates jobs in the private | | | | who oppose the bill simply see it as an expansion of |
| sector in the lending industry. The existing loan | | | | the federal government that can only lead to added |
| program provides loans to students by subsidizing | | | | bureaucracy and more money being spent. |
| private lenders. | | | | Opponents also question the cost savings, saying |
| If passed, the bill would create a College Access and | | | | that any money saved will quickly be spent. |
| Completion Innovation Fund, which is geared to | | | | |