Tom Harkin: “this bill makes unprecedented investments to expand high-quality educational opportunities for all Americans. It invests…”

“this bill makes unprecedented investments to expand high-quality educational opportunities for all Americans. It invests in the Pell grant scholarship award, strengthens historically Black colleges and universities and other minority-serving institutions, and provides more resources to States for college access and other supports for students through the college access challenge grant program. Further, these investments are paid for without increasing our Nation's deficit, through key reforms in the Federal student loan programs designed to provide a stronger, more reliable, and more efficient student loan system. The legislation directs more than $10 billion of the savings generated under this legislation to paying down the country's deficit. The education provisions of this legislation will convert all new Federal student loans to the Direct Loan Program starting in July 2010, saving $61 billion over the next 10 years. These changes will also upgrade the customer service borrowers receive when repaying their loans. The legislation will also maintain jobs by ensuring a robust role for the private sector, allowing lenders and not-for-profits to contract with the Department of Education to service Direct loans. The legislation significantly increases the Federal Pell grant award; the cornerstone of need-based Federal student assistance since its creation in 1972.”