[Congressional Record Volume 155, Number 140 (Thursday, October 1, 2009)]
[Extensions of Remarks]
[Page E2418]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               STUDENT AID AND FISCAL RESPONSIBILITY ACT

                                 ______
                                 

                          HON. BETTY McCOLLUM

                              of minnesota

                    in the house of representatives

                     Wednesday, September 30, 2009

  Ms. McCOLLUM. Madam Speaker, I rise in strong support of the Student 
Aid and Fiscal Responsibility Act (H.R. 3221), which will end the 
giveaway of $87 billion in corporate welfare to financial institutions 
for processing paperwork. Those funds instead will be reinvested to 
expand the Pell Grant program, increase assistance to community 
colleges, and support early learning to ensure more low-income children 
are prepared to start kindergarten. A savings of $10 billion will also 
be used for deficit reduction.
  H.R. 3221 terminates the Family Federal Education Loan (FFEL) 
program. Instead, all new federal student lending will originate 
through the existing Federal Direct Loan Program. This change will 
result in a more reliable system for students and their families by 
avoiding risks in the private lending market, which were exposed in the 
recent financial crisis. Taxpayers will benefit from a more efficient 
student loan system because eliminating the unnecessary middleman will 
produce $87 billion in savings for taxpayers over the next 10 years.
  The Student Aid and Fiscal Responsibility Act also makes strategic 
investments to allow more students to attend college and graduate with 
less debt. The Pell Grant Scholarship program is increased by $40 
billion. As a result, more than $75.5 million in additional funding 
will be provided to students in Minnesota's Fourth Congressional 
District over the next decade. Additionally, this legislation 
strengthens and expands the Perkins Loan Program, and it helps families 
by simplifying the complicated and time-consuming Free Application for 
Federal Student Aid (FAFSA)--the bill enables families to apply for 
federal student aid using their tax form.
  America's community colleges are another priority investment in H.R. 
3221. At a time when millions of Americans are seeking new employment 
opportunities, this bill makes significant new funding available to 
retrain workers, prepare students for 21st century jobs and introduce 
students to post-secondary education. These investments will improve 
the quality of education for over 100,000 students that are enrolled in 
Minnesota community colleges.
  This legislation is a historic opportunity to invest in education 
while, at the same time, reducing the federal deficit. Unfortunately, 
the Republican minority is trying to distract attention from the bill 
by offering a motion to recommit that prohibits Federal funding to the 
Association of Community Organizations for Reform Now (ACORN). ACORN, a 
nonprofit organization that works to empower low-income Americans, does 
not receive $1 of Federal funding in H.R. 3221. ACORN is currently 
under investigation for possible wrong-doing--these inquiries should 
proceed and final judgments should be made. No organization found 
guilty of criminal conduct should continue to receive taxpayer support. 
However, it is inappropriate and likely unconstitutional for the House 
of Representatives to pre-judge the outcome of a formal investigation 
by prohibiting Federal funding. I strongly urge my colleagues to join 
me in opposing this political ploy and in supporting passage of H.R. 
3221.

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