Getting a college education just got a lot more affordable. On Sept. 17, the House voted 253 to 170 to pass H.R. 3221, the Student Aid and Fiscal Responsibility Act (SAFRA). The bill will reform the federal student loan system, saving taxpayers $87 billion and directing $10 billion of those savings back to the U.S. Treasury, according to a press release from the office of U.S. Rep. Lois Capps (D-Santa Barbara), who voted in favor of the bill. “Ensuring that all Americans have the financial resources to go to college and get the skills and job training necessary to get a good paying job is a smart investment for our country,” Capps said in the release. “This is an important step in rebuilding our economy and ensuring that our workforce remains the most highly skilled, cutting-edge, and effective in the world.” The bill is part of President Barack Obama’s initiative to ensure America leads the world in college graduates by 2020. SAFRA is designed to change the way the student loan system functions by originating new loans through the government’s direct loan program, while maintaining competition among private lenders and nonprofits. For more information, visit edlabor.house.gov/blog/2009/07/student-aid-and-fiscal-respons.shtml.
This article appears in Sep 24 – Oct 1, 2009.
