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senate Bill S. 108

Does The Application Process For Federal Financial Aid Need To Be Simplified For Borrowers?

Argument in favor

If the application process for student loans and grants were simpler, more students and their families would apply for and ultimately receive the aid that they’re eligible for.

BraveNewFilms's Opinion
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02/28/2015
Much like Bills and political Jargon, FAFSA and other student aide documents are designed to be confusing to rid "unfit" writers. Simplifying the process would allow thousands more to attend college...and to understand what student debt may look like when they leave. http://youtu.be/HIyMHLkZ804
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Wendell's Opinion
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03/29/2015
Not only simplified, but corrected as well. A single man 20-25 years of age, not receiving support from his parents, should be able to apply for aid as an independent student. It should not matter what his parents' income is.
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AndrewGVN's Opinion
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09/10/2015
The process needs to be simplified so that more people utilize this tool more effectively. If financial aid is easier to receive and get granted, that would create less student loans, and that would create more activity in the economy.
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Argument opposed

The accumulation of student debt is already becoming a crisis in the U.S. — if we want to make it easier for students to borrow, we need to teach them better borrowing practices and debt relief.

USStudentAssociation's Opinion
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02/16/2015
The FAFSA (Free Application for Federal Student Aid) certainly needs to be simplified, though not at the expense of our Subsidized Loan Program that helps millions of students pay their student loan interest rates while still in college. Simplifying the FAFSA is taking attention away from the true problem at hand, astronomical costs. It's like fixing a broken door to a broken down house. Sure, the door needs to be fixed so that you can enter the house. But if you get rained on regardless of whether you're inside or outside the house, it simply makes no difference.
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Peter's Opinion
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02/18/2015
schools are so costly because of the feds , students need to take manditory classes on repayments and cost,degree or not.
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Dolores's Opinion
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02/14/2015
No. Make them work for their money. Too many don't pay back their debts anyway.
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What is Senate Bill S. 108?

This bill would eliminate the Free Application for Financial Student Aid (FAFSA). It would do this by shrinking the 10-page questionnaire to two simple questions - what is your family size, and what was your household income two years ago? This new application would apply to federal financial aid and Pell Grants.


U.S. Department of Education's Federal Student Aid is the single largest provider of student financial aid for higher education in the U.S. This legislation would affect student financial assistance programs authorized under Title IV of the Higher Education Act of 1965.

S. 108 would consolidate federal student loan programs from six to three — one each for serving undergraduate students, graduate students, and parent loans. The two existing federal grant programs would also be combined into a single Pell Grant program.


The Pell Grant program would be modified to offer grants to students all year round — not just during specified academic terms — granting them more flexibility as they pursue their degree.


A searchable table would be created to show high school students in their junior year how much federal aid they and their families would be eligible for when they go to college. Enrollment-based limits would be put in place to ensure that borrowers aren't taking on excessive loans.


Repayment plans would be narrowed to offer two different options: an income-based repayment plan and a 10-year repayment plan.

Impact

College students (present and future) and their families, colleges and universities, the Department of Education.

Cost of Senate Bill S. 108

A CBO cost estimate is unavailable.

More Information

In-Depth:

In the 2011-12 academic year, 71 percent of college students in the U.S. received some form of financial aid. One of the largest of those programs — Pell Grants — in 2011 was offering aid to over 8.8 million students. While that might seem like a lot, research shows that it isn’t covering all of the eligible students. There are approximately 2 million additional students who are eligible but didn’t fill out a FAFSA, and over half of those would’ve received the full Pell Grant award of $5,645 had they done so.


Having surpassed the nation's collective credit card debt, student loan debt in the U.S. has exceeded $1.2 trillion, carried on the shoulders of more than 40 million students (former and current). The average amount of student loan debt is about $30,000.


Media:

Co-sponsoring Senators Lamar Alexander (R-TN) and Michael Bennet (D-CO) Press Release

Committee on Health, Education, Labor and Pensions Fact Sheet

Business Insider

U.S. News & World Report

CNN Money (Context)


(Photo Credit: Flickr user mckibillo) 

AKA

Financial Aid Simplification and Transparency Act of 2015

Official Title

A bill to amend the Higher Education Act of 1965 to improve access for students to Federal grants and loans to help pay for postsecondary, graduate, and professional educational opportunities, and for other purposes.

bill Progress

  • Not enacted
    The President has not signed this bill
  • The house has not voted
  • The senate has not voted
      senate Committees
      Committee on Health, Education, Labor, and Pensions
    IntroducedJanuary 7th, 2015
    BraveNewFilms's Opinion In Favor
    ···
    02/28/2015
    Much like Bills and political Jargon, FAFSA and other student aide documents are designed to be confusing to rid "unfit" writers. Simplifying the process would allow thousands more to attend college...and to understand what student debt may look like when they leave. http://youtu.be/HIyMHLkZ804
    Like (14)
    Follow
    Share
    USStudentAssociation's Opinion Against
    ···
    02/16/2015
    The FAFSA (Free Application for Federal Student Aid) certainly needs to be simplified, though not at the expense of our Subsidized Loan Program that helps millions of students pay their student loan interest rates while still in college. Simplifying the FAFSA is taking attention away from the true problem at hand, astronomical costs. It's like fixing a broken door to a broken down house. Sure, the door needs to be fixed so that you can enter the house. But if you get rained on regardless of whether you're inside or outside the house, it simply makes no difference.
    Like (4)
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    Peter's Opinion Against
    ···
    02/18/2015
    schools are so costly because of the feds , students need to take manditory classes on repayments and cost,degree or not.
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    Elinor's Opinion Against
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    02/11/2015
    Students, inexperienced in economy, already borrow too much money without understanding the huge debt awaiting them upon graduation, and even if they never finish school. There's absolutely no reason to permit excessive loans to people too young and inexperienced to see that far down the road.
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    hrieniets's Opinion Against
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    02/26/2016
    Unless they are providing free universities, the federal government should not be helping kids pay for college. It should be done by the states. Not to mention this would only increase the burden 20-something's have of paying student loan debt.
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    Sue's Opinion Against
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    02/17/2015
    WE DIDN'T HAVE AID WHEN I WAS GROWING UP AND WANTED TO GO TO COLLEGE, IF I HADN'T PAID FOR IT I COULDN'T GO......
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    Mark's Opinion In Favor
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    12/19/2015
    FAFSA needs to based on current and future earnings not the previous year which does not in anyway reflect any possibility of what you may contribute to school tuition. How can anyone working full-time except to get go to school full-time and get a full pell grant? They can't because they'll most likely get nothing which means loans and loans won't cover everything which means you can't drop to part-time work right away so you have to go to school part-time which means now that A.A. Is going to 2-3 times as long as originally planned and the loans keep fucking stacking up. REFORM FAFSA NOW!
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    Wendell's Opinion In Favor
    ···
    03/29/2015
    Not only simplified, but corrected as well. A single man 20-25 years of age, not receiving support from his parents, should be able to apply for aid as an independent student. It should not matter what his parents' income is.
    Like (1)
    Follow
    Share
    Dolores's Opinion Against
    ···
    02/14/2015
    No. Make them work for their money. Too many don't pay back their debts anyway.
    Like (1)
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    AndrewGVN's Opinion In Favor
    ···
    09/10/2015
    The process needs to be simplified so that more people utilize this tool more effectively. If financial aid is easier to receive and get granted, that would create less student loans, and that would create more activity in the economy.
    Like (1)
    Follow
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    Richard's Opinion Against
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    02/14/2015
    I have never seen the government make anything simpler! Applying for funds should require hurdles.
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    Robert 's Opinion Against
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    02/11/2015
    It's practically giving money away. Prove you are a citizen and that the loan can be paid back!
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    SouthernGal's Opinion Against
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    03/22/2016
    Vote for Bernie, make college tuition free and this bill becomes moot.
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    avoicethatmatters's Opinion In Favor
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    02/11/2015
    This is a process that needs to be user friendly. People are wanting help to get into college, they don't have a law or finance degree to understand.
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    digilyssa's Opinion In Favor
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    06/20/2016
    .
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    David 's Opinion Against
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    04/06/2016
    Feds butt out of schools
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    Nancy's Opinion In Favor
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    06/07/2016
    College should be free if we want to be competitive with the rest of the world!
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    Amador d 's Opinion In Favor
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    03/29/2016
    Yes, the filling out of all these forms for loans are redundant and to timely
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    Michael's Opinion In Favor
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    11/13/2015
    Should be based on parents income for at least first 2 years in school. Then based on GPA for rest of of the education process
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    Gary's Opinion Against
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    05/04/2016
    I'm not actually against this, but there must be provision requiring predatory for-profit "universities" to repay the debt when a student cannot find meaningful work after graduation. These abusers need to provide everything they promise or restore the stays quo before the student enrolled.
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