Blog: The 6th Anniversary of the Student Aid and Fiscal Responsibility Act
Statement
Six years ago today, President Obama signed the Student Aid and Fiscal Responsibility Act (SAFRA) into law. This historic legislation made college more affordable for millions of Americans by ending student loan subsides for financial institutions and banks and shifting over $60 billion in savings back to students. Most of these savings went to strengthening the Pell Grant program by supporting a significant increase to the maximum award and making sure that it keeps pace with inflation. Since 2008, President Obama and Congressional Democrats have increased the maximum Pell Grant by more than $1,000 and increased the number of recipients by over 1.5 million students. SAFRA also expanded income-based repayment options for student borrowers, created the direct loan program, invested in community colleges, and increased support for Historically Black Colleges and Universities (HBCUs) and Minority-Serving Institutions (MSIs).
Democrats believe that students should have access to a higher education that provides them with the knowledge and skills they need to compete in the 21st century economy without having to take on decades' worth of student debt. Pell Grants--the cornerstone of each student's financial aid package--are critical to this effort. As we work to produce a comprehensive and bipartisan reauthorization of the Higher Education Act, Congress should prioritize making sure the Pell Grant covers a greater share of college costs for more students.
Unfortunately, the Majority's 2017 budget resolution moves us in the wrong direction by cutting SAFRA's investments in Pell and freezing the maximum award over the next 10 years. This would be a painful blow to students who are counting on their Pell Grants to keep up with the rising cost of attending college. This year, Committee Democrats will be working on solutions to improve college access, affordability, and completion. Strengthening Pell Grants, which eight million Americans rely on to help pay for college, will play a key role as Congress works to address these challenges.
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