Student Aid and Fiscal Responsibility Act of 2009

Bill 111 hr 3221, also known as the Student Aid and Fiscal Responsibility Act of 2009, is a piece of legislation introduced in the US Congress. The main goal of this bill is to reform and improve the federal student aid system in order to make higher education more accessible and affordable for all students.

One of the key provisions of the bill is the elimination of the Federal Family Education Loan (FFEL) program, which provides federal subsidies to private lenders who issue student loans. Instead, all federal student loans would be originated and serviced directly by the Department of Education through the Direct Loan program. This change is expected to save the government billions of dollars in subsidies and administrative costs.

The bill also includes provisions to increase funding for Pell Grants, which are need-based grants awarded to low-income students to help cover the cost of college tuition. The maximum Pell Grant award would be increased and tied to inflation in order to keep pace with rising college costs. Additionally, the Student Aid and Fiscal Responsibility Act of 2009 includes measures to simplify the Free Application for Federal Student Aid (FAFSA) process, making it easier for students to apply for financial aid. The bill also includes provisions to improve loan repayment options for borrowers, including income-driven repayment plans that cap monthly payments based on income. Overall, the Student Aid and Fiscal Responsibility Act of 2009 aims to make higher education more affordable and accessible for all students by reforming the federal student aid system and increasing funding for Pell Grants. The bill is currently under consideration in Congress and has received support from education advocates and student organizations.