Sablan, Ind.-MP, is one of 22 original co-sponsors of the bill.
“In terms of increasing the educational opportunities for people from the Northern Marianas,” said Sablan, “this is one of the most important pieces of legislation yet from the 111th Congress.
“And investing in education is the most important way to ensure a sound economy in our islands 30, 40, 50 years down the road.”
The Student Aid and Fiscal Responsibility Act reforms the way the federal government handles student loans. By cutting out the middle men in these transactions — banks and other private lenders — the federal government will save $87 billion over the next 10 years, according the nonpartisan Congressional Budget Office.
The money saved will go directly to students and schools instead of to financial institutions.
“Pell grants will be going up,” Sablan said. “The maximum annual scholarship will rise from $5,500 in 2010 to $6,900 by 2019.
“And starting in 2011, Pell grants will be matched to rising costs-of-living plus 1 percent. This not only increases the dollar amount students will be eligible for, but also increases the number of students who will meet the income threshold to receive a scholarship.”
The House Committee on Education and Labor, where Sablan is a member, estimates that in the Northern Marianas 773 students will be eligible for a Pell grant in the 2010-2011 academic year, and an additional 192 students will be eligible over the next 10 years.
Students will find it easier and cheaper to borrow money for tuition, also.
The Free Application for Federal Student Aid will be simplified.
The low-cost Perkins Loan program will expand. And interest rates on federal student loans will be need-based and more affordable.
Students will also receive more support in school through the $750,000 grant the Northern Marianas will receive to fund the College Access Challenge Grant program.
The program offers matching challenge grants to encourage local governments and philanthropic organizations to invest in projects that help low-income students succeed in postsecondary school.
Typical projects offer student loan cancellation or repayment or interest rate reductions for borrowers who are employed in a high-need geographical area or a high-need profession, provide need-based grant aid, and conduct professional development for guidance counselors at middle and secondary schools, financial aid administrators, and college admissions counselors.
