Rep. Eshoo Votes for Historic Increase to Student Aid
"This is the largest single increase ever made to student aid funding, and as such, it is historic," Rep. Eshoo said. "This bill renews our commitment to our children and eases the cost of college for students and their families, lowering the debt of graduates, and strengthening community colleges and early learning programs."
The legislation increases funding for a variety of scholarships and student loans, including the Pell Grant scholarship and the Perkins Loan program, and updates the method by which loans are administered. It will lower the interest rates on need-based loans and convert all new student loans, starting in July 2010, to the cost-efficient Direct Loan program which is not affected by changes in the financial markets. The bill also encourages expanded educational opportunities by supporting community colleges, workforce programs, online training, and adult education.
"We owe our children the opportunity to be successful, and this begins with an affordable, world-class education," Rep. Eshoo said. "This bill widens the door to that opportunity."
The bill complies with the House "PAYGO" requirement, a provision in the House Rules which stipulates that legislation passed by the House cannot increase the federal deficit. The legislation actually exceeds this requirement and will reduce the deficit by $10 billion over 10 years.
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