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Student Aid and Fiscal Responsibility Act of 2009

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    Introduced by Rep. Miller

    • The Student Aid and Fiscal Responsibility Act of 2009, HR 3221, was introduced July 15 by Rep. George Miller, a California Democrat, and 41 co-sponsors. It was referred to the House Education and Labor Committee. The bill passed the House on September 17 by a 253-to-171 vote. It was referred September 22 to the Senate Health, Education, Labor and Pensions Committee, where it died.

    Proposed Changes to the Pell Grant Program

    • The proposed law sought to change the formula for mandatory funding of Pell grants beginning in fiscal year 2011. Instead of using both mandatory and discretionary funds, mandatory funding would be increased from the previous year based upon the Consumer Price Index plus one percentage point minus the greater of the prior year's discretionary grant level or $4,860. The bill also sought to change criteria and calculations for grant eligibility. Such changes included excluding both parents' and students' assets and most untaxed income.

    Increasing Higher Education Access

    • The proposed law sought to increase higher education access and completion of post-secondary education. It also sought to amend the "College Access Challenge Grant" program to create a "College Access and Completion Innovation Fund." Along with the challenge grant program, it would have created "State Innovation and Completion Grants" and "Innovation in College Access and Completion National Activities Grants" programs. The "State Innovation and Completion Grants" aimed to allow states to increase the number of students' completing their post-secondary education, especially under-represented students, and develop a statewide system to track students' success in post-secondary education and post-graduation employment. The bill also allowed states to award grants to non-profit organizations such as those guaranteeing student loans.

    Increased Gradudation Rates Encouraged

    • The bill required states to commit one-third of the funding to two-year colleges and universities. It also mandated awarding grants for programs that encourage an increase in the number of post-secondary education graduates, including those providing supplemental grants or loans. Priority was given to programs serving underrepresented students, veterans or dislocated workers; those offered by post-secondary institutions that didn't primarily award bachelors' degrees; those increasing the number of graduates in technology, science, mathematics and engineering; those increasing the financial acumen of students eligible under the law; and programs encouraging partnerships between higher education institutions with high graduation rates and those with low graduation rates.

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