Late yesterday afternoon, the House Rules Committee released rules for the upcoming House debate of H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009 (SAFRA). Of the 45 amendments submitted for consideration, only 24 were deemed eligible for consideration for the debate that is expected to begin as early as today.

In a victory for part-time students, one NASFAA amendment - originally sponsored by Rep. Dave Loebsack (D-IA) -- has been accepted into the manager's amendment. The amendment would ensure that part-time students can also take advantage of year-round Pell Grants, something the Department of Education has proposed to prohibit in proposed regulations. That amendment was withdrawn by Loebsack and then incorporated into the manager's amendment submitted by House Education Chairman George Miller (D-CA).

Only six of the 24 amendments allowed for consideration deal directly with federal student aid programs. A brief summary of each of these amendments -- as well as a link to their legislative text -- is available below. NASFAA will continue to monitor H.R. 3221 and update members as the debate and subsequent vote unfolds. NASFAA will provide a more thorough analysis of the final House bill after its passage. The Senate has yet to take up similar legislation, although it is expected to do so in the near future.

Summary of H.R. 3221 Amendments for Consideration

• Manager's Amendment Submitted by George Miller (D-CA): Would make the following federal student aid changes:
  • Clarifies that both part-time and full-time students are eligible to benefit from the Year-Round Pell Grant program;

  • Makes several clarifications to the authority of the Secretary with respect to the College Access Challenge Grants, State Innovation an Completion Grants, and Innovation in College Access and Competition National Activities Grants;

  • Establishes a program to provide financial assistance to dependent children of a public safety officer (e.g., firefighters, paramedics, other first responders) who died in the line of duty on the same terms as children of military service members who are killed in the line of duty under current law;
  • Makes several clarifications to the loan servicing process; and requires the Secretary of Education to provide technical assistance to institutions of higher education in operating the Direct Loan program, including assisting institutions with the transition into the program.

• Financial Literacy Amendment Submitted by Jim Himes (D-CT), Carolyn McCarthy (D-NY), and Allyson Schwartz (D-PA): Would make five minor language adjustments to strengthen the financial literacy provisions of the State Innovation Completion Grants, Innovation in College Access and Completion National Activities, and contracting requirements related to private student loan servicers.

• Guarantor Amendment Submitted by Bob Etheridge (D-NC) , Peter Welch (D-VT), David Price (D-NC), Earl Pomeroy (D-ND), John Lewis (D-GA), David Scott (D-GA), Chellie Pingree (D-ME), Paul Tonko (D-NY), and Doris Matsui (D-CA): Would clarify that borrower services, including delinquency prevention, default aversion, and loan counseling, are allowed uses of grant funds. The amendment also explicitly authorizes the Department of Education to contract directly with guaranty agencies for funded services.

• Direct Loan Outreach Amendment Submitted by Henry Cueller (D-TX): Would require the Secretary of Education to conduct outreach activities to educate students and their families about the transition to Federal Direct Lending.

• Drug-Related Offenses Amendment Submitted by Mark Souder (R-IN): Would eliminate a provision in H.R. 3221 that would allow those convicted of drug offenses to receive federal student aid (i.e., retains current law).

• ECASLA Amendment Submitted by John Kline (R-MN) and Brett Guthrie (R-KY): Would extend the ECASLA programs through 2014 and create a commission to develop a new private sector model for student lending.

Posted 09/16/09 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web site questions or comments to Web@NASFAA.org.