The House of Representatives passed the [Student Aid and Fiscal Responsibility Act of 2009](https://www.govtrack.us/congress/bill.xpd?bill=h111-3221) on Thursday, which would end federal subsidization of private student loans and makes more money available for federal loans by reducing the cost of loan programs.

According to The Associated Press, the act is expected to save between $47 billion and $87 billion, which will be used to increase the maximum Pell Grant to $6,900 by 2019 – up from $5,350 in the 2009-2010 academic year – and fund school construction and pre-school programs.

“This legislation makes important investments to help make college affordable and accessible for all eligible students,” said Melissa Salmanowitz, press secretary for the [House Education and Labor Committee](https://edworkforce.house.gov/). “It will help us transform our student aid programs so that they finally operate in the best interests of students – not banks – and help relieve the burdens of overwhelming debt.”

The bill would make the federal government the sole provider of federal student loans; currently, the government also subsidizes private lenders. According to Scott Fleming (SFS ’72), associate vice president of the [Office of Federal Relations](https://ofr.georgetown.edu/) at Georgetown, the university uses both public and private lenders. The Office of Federal Relations has been preparing for the potential transition process and continues to do so, he said.

“Certainly, as with other advocates for higher education and financial aid for college and university students, Georgetown is supportive of the overall effort to expand federal financial aid resources for our students,” Fleming said. “However, there are specific issues about the details of the legislation where we continue to seek improvements and modifications.”

Fleming and Dean of Student Financial Services Pat McWade have met with House and Senate officials regarding the bill and student financial aid reform.

Georgetown had 661 students participate in the Federal Pell Grant Program this year. The students received a total of $2.2 million in aid, Fleming said.

“Since Pell Grants along with our extensive Georgetown Scholarship Program are important to our `need blind/full need’ policies, the increased Pell Grant funding in the bill is good news,” Fleming said in an e-mail.

Additionally, the bill proposes reforms in the Federal Perkins Loan Program, in which Georgetown also participates. This year, 750 students received a total of $3.5 million from this program. According to Fleming, the Office of Federal Relations has been working to ensure that the restructured Perkins funding received by schools will not be less than $5 million, the average funding received by Georgetown from the program in the last five years.

The bill also includes education reforms at the primary- and secondary-school levels. The bill proposes the [President’s Early Learning Challenge Fund](https://www.ed.gov/about/inits/ed/earlylearning/elcf-factsheet.html), which would urge states to provide statewide early learning services for children from birth through age five, according to a statement from the [Office of Management and Budget](https://www.whitehouse.gov/omb/). The bill also proposes the American Graduation Initiative, which will focus on improving community colleges. The [Senate Committee on Health, Education, Labor and Pensions](https://help.senate.gov/) is expected to legislate and introduce a similar bill in the near future, according to Fleming.”