Draft legislation released on Thursday by Sen. Lamar Alexander (R-Tenn.) would streamline the federal financial aid application and repayment process for college students.
Alexander and Sen. Michael Bennet (D-Colo.) unveiled the bipartisan draft legislation, which would also make Pell grants available year-round and take steps to discourage students from over-borrowing.
“Every year, 20 million students waste millions of hours and countless dollars on a 100-question application form that only needs to be the size of a postcard,” Alexander, the ranking member of the Senate Health, Education, Labor and Pensions Committee, said. “This bill would cut more than 100 questions down to two, and help families get aid information sooner, while protecting taxpayers from lending more money to students than they’re able to repay.”
The shortened application form would be referred to as the “Student Aid Short Form.” The bill would also streamline federal grant and loan programs for more effective operation.
“While other countries are promoting access to higher education, we are making it harder and harder for people to attain a degree,” Bennet said. “This bill will simplify the entire financial aid process to promote more access and success. Under a simplified system we can expect more students will enroll and stay in school.”
Under the measure, students would be able to refer to a look-up table to determine how much federal student aid they are entitled to when choosing a college. The measure would also make repayment simpler by instituting two repayment plans: a 10-year repayment plan and an income-based plan.