(September 2009) On September 17, the House of Representatives completed debate, voted, and passed HR 3221, the Student Aid and Fiscal Responsibility Act of 2009 by a vote of 253-171. The vote was primarily among party lines, however four Democrats voted against the bill: Rep. Allen Boyd (FL), Rep. Stephanie Herseth-Sandlin (SD), Rep. Paul Kanjorski (PA), and Rep. Mike McMahon (NY). The primary components of the bill include the elimination of the FFEL program, increased spending on Pell Grants, spending on new higher education and Pre-K-12 programs. No substantive changes to the Perkins Loan provisions were made during the full House consideration of the bill yesterday and today. Changes to the Perkins Loan program include an increase in available loan funds, but also the removal of the in-school interest subsidy, of cancellation benefits and the transfer of the administration of loan servicing and collections to the Department of Education as a new version of a direct loan.

Much of the debate focused on the elimination of the FFEL Program and a move to Direct Lending. Twenty-four amendments were considered. COHEAO spoke with many Members of the House and proposed an amendment relative to our priorities; however Members declined to introduce anything without the support of Education and Labor Committee leadership. Although an amendment was not offered, COHEAO was able to secure commitments from key Members to work with us on a final version of the bill. COHEAO will continue to work with these Members and gather further support.

The Senate has yet to take up similar legislation, although the Health, Education, Labor and Pensions (HELP) Committee is expected to do so in the near future. Following HELP Committee approval, the bill will move to the Senate floor, followed by a conference between the House and Senate to work out any differences.

COHEAO will continue to update you on further developments and will work hard to ensure a student-friendly bill with the benefits of the current Perkins Loan Program.

Back to News List | Back to Archives List