Collegiate Times

The Student Aid and Fiscal Responsibility Act of 2009 (H.R.3221) is currently awaiting a vote in the Senate and, if passed, will allow students to receive increased amounts of student loans beginning in the 2010 fiscal year.

The bill directs the secretary of education to award competitive matching State Innovation and Completion grants to states that implement activities and services increasing students' ability to complete postsecondary school.

Programs that serve underrepresented students and increase degree or certificate completion in the fields of science, technology, engineering and mathematics will be given priority in the bill.

The bill states a purpose of promoting innovation in postsecondary education practices and policies by institutions of higher education, states and nonprofit organizations to improve student success, and help with the completion of postsecondary education for underrepresented students.

Another purpose of the bill is to assist states in developing data and reporting systems to enhance the quality and availability of information about student success, completion and post-completion employment.

Barry Simmons, director of scholarships and financial aid at Virginia Tech, said that there are two major pieces that Tech has been tracking with the bill.

"The two pieces are the elimination of a FFEL program, Federal Family Education Loan program, and the Perkins Federal Loan Program," Simmons said. "The senate bill has not been dropped yet, so we are not exactly sure what is going to come out of it, because once the Senate passes a bill then they have to conference it and until that conference is voted on we really do not have any finality."

The Perkins loan program provides low-interest loans to aid needy students. Individual colleges have "substantial flexibility in determining the amount of the loan," according to the U.S. Department of Education Web site.

Simmons said it is difficult for the university to gauge how the bill might affect Tech.

"In terms of affordability, the elimination of the FFEL program should really not have a positive or negative effect on affordability," Simmons said. "Virginia Tech students really should not notice any difference."

Simmons said the students who will notice a difference are those who are at colleges or universities that do not currently participate in direct lending, which is what replaces the FFEL lending.

"They will begin a simpler process to get student loans," Simmons said. "The Perkins - we will have to see how much is duplicated in the Senate bill."

Simmons is confident the Senate will eliminate the FFEL lending.

"We are sure the Senate will go through with the elimination of FFEL," Simmons said. "I am 99 percent sure, but I am not sure what the Senate will do with the Perkins, so once we figure that out, then we can start doing some analysis."

Tech students should notice no difference with student loans, Simmons said.

"We already participate in direct loans, so this change should not affect us at all," Simmons said. "The only thing that could affect us is if the Senate could make a diminishment in the service to the loans, which means that it may take a little longer to get a loan, but we really do not anticipate that."