Education Secretary Arne Duncan testified before the House Budget Committee yesterday and urged Congress to support the president's fiscal year (FY) 2011 budget, which assumes passage of the Student Aid and Fiscal Responsibility Act (H.R. 3221).

"We are working to win Senate approval for [SAFRA] as soon as possible," Duncan told committee members. Duncan outlined how the bill would increase funding for the Pell Grant program and create low-cost student loans, along with several other provisions. In combination with SAFRA, the president's FY 2011 budget would make available more than $156 billion in new grants, loans, and work-study assistance, a 60 percent increase over 2008 levels, according to Duncan. He also highlighted the Administration's plans to move Pell Grant funding from discretionary to mandatory spending to eliminate the uncertainty that program faces every year during the appropriations process.

Finally, Duncan highlighted the Administration's plans to help borrowers repay their student loans by reducing the minimum IBR payment from 15 percent to 10 percent of borrowers' discretionary income.

"No one should go broke because of student loan debt," Duncan said. "These changes will help more than one million borrowers next year.

Secretary Duncan will testify before the House Education and Labor Committee next week. His prepared testimony from yesterday's hearing is available online.

Media Coverage

Duncan Defends Cost and Direction of Education Budget to Congress Chronicle of Higher Education (A paid subscription may be required.)

Posted 02/26/10 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web site questions or comments to Web@NASFAA.org.