House passes Financial aid bill

 The United States Congress passed a bill with a 253 to 171 vote that will eliminate the wasteful Federal Family Education Program (FFELP) and use the savings to increase funding for the Pell Grant Program, fund direct loans from the government to students, and help better fund higher education programs. Opponents of the Student Aid and Fiscal Responsibility Act of 2009 (SAFRA) are calling it a job killing government takeover of student lending. However, this bill can potentially help fix the higher education funding system in this country. The naysaying is more likely attributable to the hyperbolic, hysterical reactions that the right is having to any legislation that furthers the Obama administration's goals rather than a legitimate fault within the bill.

FFELP is an outdated and inefficient program that is carried out by private lenders. That would be the same private lenders that started the economic mess with their irresponsible mortgage loans. With the rising cost of tuition, families not being able to contribute as much because of the economy, and the rising cost of living, more students need more money to get through school than ever before. It is more than time for the student loan process to be overhauled.

This legislation, if passed, will generate almost 90 billion in savings over the next 10 years. Ten billion of which is going to go right back into the indebted US Treasury. Four billion will go to repair and renovation projects on campuses. There will also be funding for the success of historically black colleges, and for programs that help children go in to grade school with all the skills they need.

SAFRA will also create an easier to use FAFSA form, expand the Perkins Loan Program to every college campus, and increase the amount of money that can be rewarded through Pell Grants.

The biggest change in this legislation is a move away from private lenders. If passed, all new loans after July 1, 2010 will be under the direct loan program. These loans, unlike bank loans, are completely unaffected by the economy, insuring that students do not have to worry about the market to get a loan.

There is some concern about the government taking on such a big role, especially one that previously had been filled by private industry.

As the Senate adopts its version of this bill, what should be a lively and educated debate will begin. It is important that everyone keep in mind that this bill is not an attempt to socialize education, or the beginnings of a government takeover that will destroy the nation. It is a bill to help out taxpayers and improve college funding.