Despite the fledgling economy, college may become more affordable for many students beginning in the 2010-11 academic year.
'This marks a new era for students across Western New York, and reaffirms our commitment to higher education. It also guarantees that our future workforce is well educated,' said Louise Slaughter (D-NY).
Victoria Dillon, a press officer for Slaughter, said that Thursday was a 'milestone' day for the education world and that this legislation merely passing the House is a small victory.
'The plan works two-fold. It will give more aid to the students as well as [saving] the government money and cutting the federal deficit by $10 billion,' she said.
The bill calls for pouring more money into Pell Grants and other federally subsidized loans covered by the Free Application for Federal Student Aid, which will not only give more students the opportunity to receive government funds, it will also cut out the private lender middlemen.
'It's smart for students and fiscally responsible. Private loans are subsidized by taxpayers anyway, so by increasing funding for the federal loans, more money goes directly to students and saves the government money,' Dillon said.
The bill, if passed, will save the government over $87 billion over 10 years and will offer funds to over 270,000 additional college students when it goes into effect. Up to $130 million will directly affect New York State.
According to the Congressional Budget Office, SAFRA is paid by overhauling the way student loans are financed. By cutting out the private banks, the government can give out more money while it saves money and essentially reinvest its savings back into the federal aid system, creating an opportunity for growth.
If the Senate passes the bill, it will go into effect beginning July 1.
In addition to offering more money to more students, the bill also aims to make applying for this money even easier. As per President Obama's campaign promise and presidential agenda, the bill will help make the FAFSA easier to fill out and more user-friendly.
'The FAFSA will have an easier application process, which should help more students apply for aid,' Slaughter said.
According to Dillon, FAFSA applications are expected to rise if the bill goes into effect. Statistics from Slaughter's Washington office project an increase of almost 20,000 applicants, from 39,000 to 58,000 in the 2012-13 academic year.
The bill will also give money to community colleges in order to bolster the economy with expanded job retraining and skills workshops.
'It's really win-win-win,' Dillon said.
Slaughter believes that if the bill is passed, the results will be visible to thousands of college students across Western New York.
'Students get more money, schools get more money, the government saves money and we decrease the deficit. [Thursday] was a great day for college students and for all of us in Washington,' Dillon said.
E-mail: spectrum-news@buffalo.edu
Photo: Courtesy of Laron Fomby
