A bill in the U.S. Senate could provide millions more in federal financial aid to students.

The Student Aid and Fiscal Responsibility Act, passed by the U.S. House of Representatives Sept. 17 and expected to be taken up in the Senate at the end of the month, would expand the federal Pell Grant and eliminate federally run private lending programs.

According to the U.S. Department of Education Web site, the proposed bill would invest $40 billion in the Pell Grant, a need-based grant awarded to low-income students, by eliminating the Federal Family Education Loan program.’ The Federal Family Education Loan program allows private lending institutions to receive federal subsidies to provide student loans at varying interest rates.

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David Gillies, spokesman for U.S. Rep. Jerry Costello, D-Ill., said by eliminating the Federal Family Education Loan program, the federal government saves $87 billion, enabling the Pell Grant expansion.

The Pell Grant would increase from $5,350 to $5,550 next year and to $6,900 by 2019, Gillies said. Starting in 2011, it would also match up with cost of living increases, he said.

‘This is landmark legislation,’ said Dave Gross, SIU spokesman. ‘This is President Barack Obama’s big push to increase the number of college degrees in the country.’

Gross said the bill is part of Obama’s plan to encourage more degree attainment in the United States. The plan, he said, is to have a 55 percent degree attainment rate in the country for people between the ages of 25 and 34 by 2025. The United States is ninth in the world in terms of degree attainment, Gross said. Japan and Canada, world leaders in the category, are at 55 and 54 percent, he said, while the United States stands at 34 percent.

‘Obama’s looking at that and seeing a competitive disadvantage,’ Gross said.

Linda Clemons, financial aid director, said by eliminating the Federal Family Education Loan program, the federal government would force colleges and universities to convert to the Federal Direct Loan program, which the Carbondale campus switched to years ago.

According to the U.S. Department of Education Web site, about 1,700 schools are involved in the direct loan program and 4,500 colleges would need to make the switch if the bill passes.

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Gross said the problem is many students are recipients of the Monetary Award Program, which more than 5,000 students on the Carbondale campus receive, and if they don’t enroll because they believe the program is unfunded, they lose out on the Pell Grant as well.

‘If the kid is not enrolled because they think the MAP program is broke, then they’re not going to be able to access that Pell program either,’ Gross said. ‘So, it’s actually a double loss to the university as well.’

Gross said he believes the Senate will not pass the bill easily, largely because of the private lending institutions that oppose the legislation. Private institutions are making the argument that they should have a role in this, Gross said, because they provide capital and are an important source of student loans.

‘The battle has just begun on this bill,’ Gross said. ‘It’s going to be fascinating to see how it moves through the Senate and what ultimately comes out of this.’

Madeleine Leroux can be reached at 536-3311 ext. 254.

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