Rep. Matsui Supports Single-Largest Investment to Help Students and Families Pay for College in History
FOR IMMEDIATE RELEASE
Thursday, September 17, 2009
CONTACT: Mara Lee
w: (202) 225-7163
Rep. Matsui Supports Single-Largest Investment to Help Students and Families Pay for College in History
House Passes Legislation to Increase Pell Grants, Perkins Loans, Streamline FAFSA Applications, Strengthen Local Community Colleges and Reduce the Deficit
Congresswoman Doris O. Matsui (D-Sacramento) today voted in support of The Student Aid and Fiscal Responsibility Act, which passed the U.S. House of Representatives today by a 253-171 vote. H.R. 3221 is the single largest investment in aid to help students and families pay for college in history - and by ending subsidies to private student loan providers - will save American taxpayers $87 billion dollars. It then re-invests $77 billion of those savings back into our nation's education system, most notably by making college more affordable, and directs $10 billion back to the U.S. Treasury to reduce the deficit.
"The passage of this bill is critical to building a stronger, more competitive economy for our nation's - and our children's - future," stated Congresswoman Matsui. "A college degree is now deeply intertwined with the promise of the American dream, and it is our responsibility to provide equal opportunities to America's students. As the skill requirements of jobs continue to increase, so too should access to postsecondary education for our nation's students."
This legislation is an historic investment in America's students, and is one of the most important bills to be considered in this Congress. The Student Aid and Fiscal Responsibility Act directs the government to originate all student loans and it also ensures that there is a role for private industry, guarantee agencies, and non-profits in providing their services. It truly is a public-private partnership.
Students in Sacramento will see a dramatic increase in their Pell grant awards over the next 10 years, increasing the maximum Pell Grant from $5,350 in 2009 to $5,550 in 2010 and $6,900 in 2019. According to the Department of Education, Sacramento students alone will see total amounts going from $44 million to over $110 million.
Roberto Torres, President and CEO of Sacramento State Associated Students, expressed his support for the legislation, stating that "With the rising costs of living and education in California, many deserving students face financial obstacles to obtaining a higher degree that ultimately benefits the state and nation with a more highly educated workforce. Federal and State financial aid helps to make higher education a reality for many families who do not plan for, nor aspire to seek an education outside of high school. Financial aid makes higher education a possibility for all."
The savings generated by the bill will also strengthen the Perkins loan program, keeps interest rates low on subsidized federal student loans, invests in community colleges in Sacramento and across the country, and expands early childhood education. Given the recent economic downturn, more and more students are seeking aid, and additional funds will allow them to achieve their goals.
This bill will help local students like Elisa Piandntilde;a, a fourth year student at Sacramento State. Elisa comes from a low-income family, and because her parents are migrant, spent many years in Foster Care. She is currently receiving the Cal Grant and the Pell Grant, and is also a participant in the Federal Work-Study Program - and the Pell Grant is crucial to her ability to stay in school. Without the financial aid afforded to her through these programs, she would have never been able to afford college.
"Elisa' story, thanks to the federal loan program this Congress has supported, is one of millions in communities all across the country," said Rep. Matsui. "I am proud to vote in favor of the Student Aid and Fiscal Responsibility Act, because it will make students' dreams of going to college, like Elisa's, a reality for millions more."
For more information about the bill, please see the fact sheets provided below:
Fact Sheet, Overall Provisions of the Bill
Fact Sheet, "College Loan Reform: What's In It For You?"
Fact Sheet on Reforming The Student Loan Program
Fact Sheet on Provisions Investing in Community Colleges
Fact Sheet on Provisions Modernizing K-12 Schools and Community Colleges
Fact Sheet on Investing in Early Education
Fact Sheet on The Economic Benefits of Student Loan Reform
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