WASHINGTON – Congressional Democrats on Thursday unveiled a scaled-back higher education bill as part of comprehensive health care legislation in preparation for a potentially historic Capitol Hill vote this weekend.
Within the Healthcare and Education Affordability Reconciliation Act of 2010, the higher education provisions contain many elements of the earlier $87 billion Student Aid and Fiscal Responsibility Act (SAFRA) that cleared the House last year. But the “new” SAFRA has less funding, as lawmakers reduced the scope of the bill to meet budget targets.
Lawmakers would pay for SAFRA by ending federal subsidies to banks that offer student loans. Instead, the legislation would require colleges to switch to the federal government’s Direct Loan program. As some colleges already have made this switch in anticipation of action on this legislation, congressional Democrats say the move now would save $61 billion.
Included in the latest version of SAFRA is $36 billion to increase Pell Grants for needy students over a 10-year period. The maximum grant would jump from $5,550 in 2010 to $5,975 by 2017. The Pell funding figure includes $13.5 billion to address a growing Pell Grant shortfall created by heavier-than-expected use of the program during the recession.
Elsewhere, the new version contains $2.5 billion in funding for historically Black colleges and universities and minority-serving institutions. A statement from House Democrats listed the overall figure but did not specify the breakdown of funds within the MSI sector.
Community colleges would get $2 billion in competitive grants to develop or improve educational and career training programs. This provision is one of the few provisions remaining from President Obama’s $12 billion American Graduation Initiative earmarked for two-year public colleges.
“This legislation offers the most sweeping changes to the federal student loan program in a generation,” said Rep. George Miller, D-Calif., chairman of the House Education and Labor Committee.
