Letter to editor: Bill will help students

Monday, October 12, 2009

In response to Tuesday’s letter to the editor, “Student loans too important to cut,” I am writing to clarify that H.R. 3221, the Student Aid and Fiscal Responsibility Act now before Congress, would only change the way the Federal Subsidized and Unsubsidized Stafford Loans, Federal PLUS and the Federal Grad PLUS loans are administered. This bill would not eliminate these federal educational loan programs. If Congress passes this act, students will continue to be awarded Federal Direct Loans as they are now.

There are some proposed changes in this bill to the Federal Perkins Loan program, but as proposed, the Perkins Loan Program would continue to be available under the Federal Direct Loan Program.

This act would also be beneficial for students in that it provides $40 billion over 10 years to increase the maximum Federal Pell Grant to $5,500. The act would ensure annual Pell amounts would increase annually thereafter by the rise in the Consumer Price Index plus one percent.

Additionally, the bill proposes significant simplification of the Free Application for Federal Student Aid (FAFSA) to make the process much easier for students and their parent(s) to complete.

— Brenda Maigaard is the director of the Office of Student Financial Aid.

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