The House Education and Labor Committee's ranking Republican, Rep. John Kline (R-MN), urged Democrats to slow down the process to overhaul the student loan programs because new budget projections show that changing enrollment and economic trends could increase the cost of the Pell Grant program by $27 billion.
Kline highlighted re-estimates from the Office of Management and Budget (OMB) released on Aug. 25 that show that changes in projected enrollments and economic forecasts are likely to increase the cost of the Pell program. These factors were not taken into account in the cost estimate of the Student Aid Fiscal Responsibility Act (H.R. 3221), legislation currently pending in Congress. Kline expressed concern that these new estimates would eliminate any savings created by reforming the student loan programs.
"The deficit is soaring, a substantial portion of the so-called savings in this bill may never materialize, and now we learn it will spend billions more than expected," Kline said. "The more we learn about this bill, the more obvious it becomes that there is nothing 'fiscally responsible' about it. These new figures are yet another reason Democrats should slow down and consider the consequences of the plan they're recklessly rushing through Congress."
House Education and Labor Committee Chairman George Miller's (D-CA) staff disputed Kline's assessment of the new projections.
Rachel Racusen, a spokeswoman for Miller and the author of the bill told Congressional Quarterly that the re-estimate Kline highlighted addresses a provision in the president's budget proposal that was not included in the House bill (H.R. 3221).
Racusen added that the OMB's re-estimate shows that there is a growing demand for the Pell Grant, which means that more needs to be invested in the program.
The House education committee approved the Student Aid Fiscal Responsibility Act (SAFRA) by a 30-17 vote on July 21 and reported it to the House floor and the Budget Committee.
Posted 08/28/09 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web site questions or comments to Web@NASFAA.org.
