On Sept. 17 Congress approved far-reaching legislation that would expand federal aid to college students and end federal subsidies to private lenders. The Students Aid and Fiscal Responsibility Act, if passed by the Senate and signed by the president, would allocate $87 billion in post-secondary education over ten years. The bill would increase the amount of federal aid available to university students and increase funding to community colleges. Perhaps most importantly, the bill would simplify the spiteful Federal Application for Student Aid, infamously known to students as the FAFSA.
The bill appropriates $499.7 million to Wisconsin over the next ten years' with $56.4 million allocated to south-central Wisconsin.
In the 2008-09 academic year,
yes""> Pell Grants numbered $5,350 a piece. If the new bill passes, the grants will increase to $5,550 in 2010 and $6,900 by 2019, surpassing the rate of inflation.
By switching more student loans from private lenders to direct loans from the government-run Direct Loan program, students and parents are guaranteed equal access to loans regardless of the state of the economy. According to the Congressional Budget Office, this switch will save American taxpayers $87 billion over the next ten years.
The bill passed the House by 253-171, with six Republicans voting aye and four Democrats nay. The act passed under the radar in between the two sides bickering over health care, but it could be the largest single expenditure on post-secondary education to ever pass through Congress.
The benefits for students may not be instantaneous or outstanding, but such a massive bill will have far-reaching consequences in universities and community colleges across the country.
By increasing available financial aid, more students may be able to attend college. President Obama made a commitment to having the highest proportion of college graduates in the world, and this will certainly make that more attainable. This could also foster an increased diversity of different economic classes and backgrounds on campuses, a type of diversity often overshadowed by discussions of ethnicity and gender. Granted, the bill is not substantial enough to produce a noticeable surge in poor students attending college, but help is needed in any amount. As most college students know, a few hundred dollars can make a world of difference during a period of life as heavily indebted as college.
The bill could not be in the works at a better time. Students and the economically disadvantaged are most at-risk at a time such as now, with the economy still in the dregs. Last year, student loan defaults increased to 6.7 percent, up from 5.2 percent in the previous fiscal year.
Today, more and new careers require a minimum of a Bachelor's degree. More students are considering applying to graduate school or attending law school, either for career advancement or to stave off entering the meager job market.
Passing this bill at a time when the federal government is spending money left and right seems fiscally irresponsible on the surface. But, as with most educational expenditures, this is an investment. The money spent with the Students Aid and Fiscal Responsibility Act will be repaid to the government and American taxpayers numerous times over. If more Americans attend and graduate from college, more and more American workers will find higher-paying jobs, command higher salaries and return more money over their lifetime to the government through taxes.
The bill will help students graduate with less debt while saving taxpayers money. Such action is wise and long overdue.
