Federal Student Issues
In March 2010, one of the most exciting pieces of financial aid legislation in recent history - the Student Aid and Fiscal Responsibility Act - was passed by Congress as part of the Health-care Reconciliation Bill. The Student Aid and Fiscal Responsibility Act expanded the Pell Grant program by increasing the amount of money available in the Pell Grant program and provided for cost of living increases to the Pell each year. Now passed, the bill is the largest investment in student aid in history. The act also cut the interest rate on subsidized Stafford loans and gave money to community colleges.
However, Pell Grants and Stafford loans were threatened by major cuts over the summer as part of the debate to raise the debt ceiling. ASA has a long track record of fighting for Pell funding and Stafford loans and this time around was no different. We were able to work with coalition partners in Washington and rally students in Arizona to contact their elected officials. Pell funding was not slashed and is safe for now, but at the cost of Stafford Loan subsidies. Stafford loans for graduate students were cut, forcing them to shoulder more and more debt.