Student Aid and Fiscal Responsibility Act (SAFRA)
The Student Aid and Fiscal Responsibility Act (SAFRA) is the single largest investment in college aid in history. It will change the way the student loan system functions by originating all new loans through the government’s Direct Loan program, but will maintain competition among private lenders and non-profits to provide top-notch customer service for student borrowers and save American jobs.
By reforming the federal student loan system, taxpayers will save $61 billion over 10 years while expanding access to an affordable college education to more American students and building a world-class community college system. It will also invest $36 billion over 10 years to increase the maximum size of Pell Grant scholarships.