Today, Secretary of Education Arne Duncan will join Chairman George Miller of the House Education and Labor committee as Miller unveils the Student Aid and Fiscal Responsibility Act.

The act would end the FFEL program by July 2010, provide additional money for Pell Grants (although not the full mandatory funding originally proposed in the President's budget), and dramatically expand and overhaul the Perkins Loan program. The revised Perkins program will require schools to pay the in-school interest on Perkins Loans - a tactic designed to incentivize schools to keep costs low.

(Editor's Note on 7/16/09 - Since this article ran, NASFAA has reviewed the legislative text and it would not require schools to pay students' in-school interest subsidies on Perkins Loans, but would require schools to provide matching funds for loan benefits to borrowers.)

NASFAA will have full coverage and analysis of the bill as details are revealed; watch Today's News for the latest coverage.

Resources

Student Aid and Fiscal Responsibility Act Fact Sheet

Media Coverage

Chairman George Miller: Fix Loan System for a Stronger Future Politico

House Bill Would End Guaranteed Student Loans and Overhaul Perkins Program Chronicle of Higher Education

House Bill Would Make U.S. Sole Student Loan Provider The Wall Street Journal

Lawmaker Proposing End to Student-Loan Subsidies, Backing Obama Bloomberg

Posted 07/15/09 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web site questions or comments to Web@NASFAA.org.