Klobuchar, Smith support bill to streamline student aid funding
Sens. Amy Klobuchar and Tina Smith helped pass bipartisan legislation in the Senate last week that would simplify the Free Application for Federal Student Aid, a news release stated.
The legislation eliminates burdensome annual paperwork for federal student loan borrowers enrolled in income-driven repayment plans by automating income recertification, and permanently funds Tribal colleges.
The Senate-passed Fostering Undergraduate Talent by Unlocking Resources for Education Act will permanently provide $255 million annually in support for historically black colleges and universities and other minority-serving institutions of higher education, which faced financial uncertainty when their funding lapsed earlier this year.
Klobuchar, Smith and their colleagues have long been fighting to secure this funding and to simplify the FAFSA for the 20 million families who have to fill out the form each year, the release stated. The Senate-passed bill will streamline the process of enrolling and staying in income-driven repayment programs, by eliminating duplicative paperwork between the IRS and the Department of Education, for nearly 8 million student loan borrowers. The FUTURE Act is intended to create the first and only permanent funding program — outside of Pell Grants and student loans — to support students and colleges.
“I’m pleased the FUTURE Act passed the Senate so that tribal colleges, historically black colleges and universities, and other minority-serving institutions of higher education across the country are one step closer to receiving the annual funding they need to keep serving millions of students,” Klobuchar stated in the release. “These institutions are critical to our higher education and workforce development systems, and Minnesotans and students nationwide deserve every opportunity to advance their education.”
“I’m so pleased this common sense, bipartisan bill is moving forward. When I hear from Minnesota colleges and college students, one issue that everyone agrees on is simplifying the FAFSA for the millions of students and families who apply for aid. This measure will also make a real difference for the millions of student loan borrowers who are navigating our outdated and overly-complicated student loan system and trying to access more affordable repayments,” Smith stated in the release. “I am so glad this bill provides permanent support for such valuable institutions like the Tribal colleges we have in Minnesota. These colleges do important work and I am glad they will have financial certainty going into the future. I look forward to this bill passing the House and being signed into law.”