Republicans in the House unveiled an alternative to SAFRA that, among other provisions, would keep private student loan equity in the system. Instead of dismantling FFEL, the plan would create a national commission to study student loan policy changes. The GOP plan would increase the maximum Pell Grant but at a smaller amount — $575 — less than half of the SAFRA target. The GOP plan also would use some of the bill’s budget savings to address the federal defi cit rather than increase spending.
While proponents expect the full House to take up the measure in early fall, the Senate has yet to consider the legislation. The bill’s prospects there may depend on who replaces the late Sen. Edward Kennedy, D-Mass., as chairman of the Senate’s Health, Education, Labor and Pensions Committee.
Congressional aides also said the bill is not likely to make additional headway until after the House and Senate figure out what to do about health care, the top issue facing lawmakers and many of their constituents this summer.
Even some education groups want to see improvements once the bill reaches the Senate. For example, the American Association of Community Colleges would like to see the two large new $600 million community college programs merged into one initiative. Any funding that goes directly to states also should have specifi c language requiring that most of the dollars eventually flow to local colleges.
“AACC strongly supports (the bill), but believes that the Senate [education] committee can make critical improvements to that bill’s community college provisions,” the association says.
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