Investing in Higher Education

This week marks the one year anniversary of the enactment of the Student Aid and Fiscal Responsibility Act (SAFRA), historic legislation which makes the largest expansion of college aid in American history. I would like to take a moment to celebrate this accomplishment, and to talk about some of the important provisions contained in this law.

We know that in order to stay competitive, we must invest in the education of our students. In California, over $75 million will be dedicated over a span of five years to the College Access Challenge Grant program, aimed at increasing the preparedness of low-income students for higher education, and also to support innovative programs that increase college retention and graduation rates.

Additionally, the investment of $36 million over ten years to increase the maximum Pell Grant scholarship to $5,550 in 2010 will help more students afford higher education. During the 2009 - 2010 academic year, $95 million in Pell Grants went to 26,483 recipients in Sacramento alone, and currently, 10,500 Sacramento State students benefit from these grants. The law will provide Sacramento students with an additional $60 million in Pell Grant funds, and invest over $91 million in Sacramento's higher education over the next several years.

The Student Aid and Fiscal Responsibility Act also changed our nation's federal student loan program and converted future loans to be a part of the stable, effective, and cost-efficient Direct Loan program. Not only will the new loan system save taxpayers an estimated $36 million over the next 10 years, it will also make federal loans more affordable to repay for students. In fact, the law will lower the monthly cap to 10 percent for new borrowers after 2014.

Recognizing the federal government's commitment to higher education is particularly important in light of the recent attempts by the new House majority to slash the Pell Grant awards and cut other essential education initiatives. I recently spoke on the House Floor in opposition of these cuts. Please know that I will continue to fight back against these cuts - you can view my statement here. Please know that I will continue to fight back against these cuts and work to ensure that education is a top priority of this Congress.

For more information about my work on education, please visit matsui.house.gov/education. As always, if I can be of assistance, please do not hesitate to call my office at (916) 498-5600.